The private sector urged the central bank to ensure that the interest rates on lending remain stable as the interest rate volatility has hit the business growth. Seeking effective intervention from the central bank, the private sector has been raising the interest rate issue since long.
Addressing a programme today, senior vice-president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Shekhar Golchha said that the private sector is raising the interest rate issue since long as the rates in the banking sector are not based on the principle of open market economy. “Thus, it is time now for the central bank to regulate interest rate volatility in the banking sector as high and unpredictable interest rates discourage businesses and investors,” he said, adding that federation under his leadership will fight to make interest rate stable in the domestic market and promote business growth. “Our products can be competitive, only if interest rates are lowered as Nepali products cannot compete with foreign products in terms of price, our export base is very low.”
Golchha is set to become the president of FNCCI in a couple of months. “The stable policies of the government and predictable interest rates will help boost the export sector,” he added.
Likewise, president of the Confederation of Nepalese Industries (CNI) Satish Kumar More, on the occasion, said that the government’s policies should be encouraging to operate businesses instead of tightening them. “The government should guarantee safety and security to foreign investors in a bid to bring in mega foreign investments,” he added.
The central bank governor Dr Chiranjibi Nepal responding to them said that Nepal Rastra Bank (NRB) has been coordinating with the private sector while introducing and enforcing new policies. “The central bank is also concerned with the interest rate issue,” he said, adding that the bank interest rates cannot be brought down overnight and to the level sought by the private sector.
Addressing a programme today, senior vice-president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Shekhar Golchha said that the private sector is raising the interest rate issue since long as the rates in the banking sector are not based on the principle of open market economy. “Thus, it is time now for the central bank to regulate interest rate volatility in the banking sector as high and unpredictable interest rates discourage businesses and investors,” he said, adding that federation under his leadership will fight to make interest rate stable in the domestic market and promote business growth. “Our products can be competitive, only if interest rates are lowered as Nepali products cannot compete with foreign products in terms of price, our export base is very low.”
Golchha is set to become the president of FNCCI in a couple of months. “The stable policies of the government and predictable interest rates will help boost the export sector,” he added.
Likewise, president of the Confederation of Nepalese Industries (CNI) Satish Kumar More, on the occasion, said that the government’s policies should be encouraging to operate businesses instead of tightening them. “The government should guarantee safety and security to foreign investors in a bid to bring in mega foreign investments,” he added.
The central bank governor Dr Chiranjibi Nepal responding to them said that Nepal Rastra Bank (NRB) has been coordinating with the private sector while introducing and enforcing new policies. “The central bank is also concerned with the interest rate issue,” he said, adding that the bank interest rates cannot be brought down overnight and to the level sought by the private sector.
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