Traders not satisfied with Monetary Policy review

Nepal Chamber of Commerce (NCC) claimed that the central bank’s first quarter review of the Monetary Policy will not help maintain fiscal stability.

The Chamber – issuing a press note today – has also concluded that the review along with the tight Monetary Policy can not address the current problems of financial sector. “The Chamber was hopeful that the quarterly review can possibly address the internal economic risks,” reads the press note, adding that the country has, though, witnessed some improvements in the external sector, the internal sector is still vulnerable.

Though the spread rate reduction by 0.4 percentage points will not push interest rate in the coming days, it has nominal chance to slash the existing interest rates, the press note further reads. The Chamber has also suggested central bank to bring down the spread to a maximum of 2 per cent.

Asking the central bank to reduce the bank rate to 5 per cent from current 8.5 per cent, the Chamber has claimed that the review will further negatively affect the industrial sector.