KATHMANDU: Nepal Rastra Bank (NRB) Governor Biswo Poudel has presented the 59th monetary policy, marking his first major announcement since taking office.
Unveiled through live broadcasts on television and social media, the policy outlines several notable changes aimed at easing financial conditions and supporting market activity.
A key reform is the hike in the individual margin loan limit, which has been raised from Rs. 15 crore to Rs. 25 crore. This addresses long-standing demands from capital market investors seeking increased access to credit for share trading.
The policy also adjusts the interest rate corridor to adopt a more accommodative stance. The bank rate has been cut from 6.5% to 6%, the policy rate from 5% to 4.5%, and the lower bound from 3% to 2.75%.
The central bank affirmed its commitment to maintaining standing liquidity facilities with added flexibility to ensure sufficient liquidity in the financial system. For the fiscal year 2082/83, the central bank targets a 13% rise in the broad money supply and credit growth of up to 12% in the private sector.
In a bid to ease stress in the real estate sector, the policy allows banks to restructure loans extended to real estate companies facing repayment difficulties.
This includes offering revised repayment schedules, providing breathing room to developers and helping stabilize the broader financial and construction markets.
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