KATHMANDU: Nepal Rastra Bank Governor Mahaprasad Adhikari is set to present the second quarterly review of the current fiscal year’s monetary policy on Tuesday, marking his final review before completing his five-year term on April 7.
With the banking sector grappling with excess liquidity and a shortage of investment-worthy sectors, Governor Adhikari is expected to introduce policy adjustments aimed at maintaining external economic balance and price stability.
This anticipated flexibility has sparked widespread interest, as it could offer much-needed relief to the banking industry.
Adhikari, who consulted with bankers ahead of the review, hinted at possible amendments to existing policies affecting the financial sector.
Bankers are hopeful that the revised monetary policy will address liquidity challenges and provide more favorable terms for the construction sector, which has been struggling due to delayed payments from the government.
The current fiscal year’s monetary policy had extended the deadline for loan repayments in the construction sector until January. However, the first quarterly review did not continue this extension, leading to increased financial pressure on entrepreneurs.
As Adhikari prepares to exit, his final policy decisions are expected to play a crucial role in shaping the near-term economic landscape.
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