Nepal Rastra Bank's Monetary Policy 2024/25 Highlights:
Key Highlights of Nepal Rastra Bank's Monetary Policy 2024/25
Stockinerary
Jul 31, 2024•1 min read
• Ensure Liquidity and Loan Disbursement: Target economic growth of 6% and ensure sufficient liquidity and loan disbursement to the private sector.
• Control Inflation: Aim to keep inflation at 5%.
• Boost Stock Market: Remove Rs. 20 crore limit on share collateral loans for institutional investors and maintain Rs. 15 crore cap for individual investors.
• Reduce Provisioning Requirement for Banks: Decrease provisioning for good loans from 1.20% to 1.10%.
• Focus on Microfinance Sector: Promote mergers and acquisitions of microfinance institutions and review regulatory framework on interest rates and service charges.
• Support Construction Businesses: Extend loan interest repayment period until the end of Mangsir 2081.
• Credit Expansion: Increase credit expansion target to 12.5%.
• Lower Policy Rates: Reduce policy rates from 5.5% to 5%.
• Support for Private Equity and Venture Capital: Protect PEVC firms from blacklisting.
• Promote AI in Financial Institutions: Encourage AI integration in banking and financial services.
• Maintain Foreign Exchange Reserves: Ensure reserves cover up to 7 months of imports.
• Increase Regulatory Retail Portfolio Limit: Raise limit from Rs. 2 crore to Rs. 2.5 crore.
• Enhance Exchange Facility: Increase limit for foreign currency exchange for travel and expand eligible countries.
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