Himal Press 
KATHMANDU: Nepali private sector has welcomed the Monetary Policy for Fiscal Year 2024/25 on Friday.
Governor Maha Prasad Adhikari unveiled the monetary policy amid a ceremony organized at the NRB Central Office.
Representative bodies of the Nepali private sector has largely welcomed the monetary policy. The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) President Chandra Prasad Dhakal expressed a positive outlook on the policy direction of the central bank. He praised the central bank for addressing private sector concerns and suggestions. However, he said that the circulars issued by the central bank for the implementation of the monetary policy will also hold significant importance. “Overall, the monetary policy is positive. But now it depends on how the circulars are issued. Many things depend on the circulars as well,” Dhakal said.
Dhakal added that setting a credit expansion target of 12.5% for the current fiscal year and adopting a policy of facilitation for it, reducing the bank rate and policy rate, making the working capital loan guidelines flexible are positive aspects of the monetary policy.
Likewise, the Nepal Chamber of Commerce (NCC) has described the policy as comparatively flexible. The NCC welcomed the reduction in bank and policy rates, as well as provisions aimed at reviving the construction sector. However, the NCC also voiced disappointment over some unaddressed issues, particularly in share transactions and real estate sectors.
Issuing a statement today, the NCC said that it has taken positively the reduction of bank rate and policy rate through the monetary policy. “The bank rate has been set at 6.5% from 7%, and the policy rate has been set at 5% from 5.5%. This will facilitate the reduction of interest rates,” it added.
NCC also said provisions made in the monetary policy for construction sector, considering the slowdown in the construction business, will help to revive the sector.
In contrast, the NADA Automobiles Association of Nepal criticized the policy for neglecting the struggling automobile sector. NADA said it had presented various suggestions to the central bank for the monetary policy, but said that the monetary policy not only failed to address any of their suggestions but completely ignored them.
The Federation of Nepal Gold and Silver Dealers’ Association, on the other hand, found some positives in the policy. Senior Vice President of the federation, Dinesh Ratna Shakya, said the monetary policy has addressed the bullion issues for the first time. The association expressed hope for changes in gold import and transaction rules.
