KATHMANDU: The Nepal Rastra Bank (NRB) is preparing the upcoming fiscal year's monetary policy to boost confidence in the private sector, ensure market vitality, and end the country's economic slowdown.

During a discussion of the Finance Committee of the House of Representatives (HoR) on Monday, NRB Governor Maha Prasad Adhikari stated that the forthcoming monetary policy will support the government's fiscal policy and promote market confidence. He emphasized that this policy aims to contribute to the government's target of achieving a 6 percent annual economic growth rate.

"Business confidence has decreased. We need to implement positive interventions to uplift confidence and ensure positive outcomes," said Governor Adhikari. He also noted that the construction and industrial sectors have experienced negative growth recently.

The governor highlighted that the economy, still recovering from the impacts of the COVID-19 pandemic, has not yet become vibrant. Despite lower interest rates, the demand for loans has not increased, and loans have not expanded in the productive sector.

Finance Secretary Madhu Kumar Marasini expressed confidence that the monetary policy will help implement the government's policy and program document and budget. "The monetary policy should create a favorable environment to achieve the targeted economic growth rate through capital mobilization," Secretary Marasini stated. -- RSS