Key Takeaway of Monetary Policy 2079/80
Nepal Rastra Bank unveiled the much awaited monetary policy of 2079/80 on Friday, 22 July 2022. In order to control the rising inflation and reviving the decelerating economy, the central bank has taken policy to control the expansion of credit and also to reduce wide money supply. Key takeaways of Monetary Policy 2079/80: As suggested by the annual budget, the central bank will aim to keep inflation at 7%. Manage the monetary and external sectors in such a way that sufficient foreign exchange reserves are maintained to meet the import of goods and services for at least 7 months for the fiscal year 2079/80. Has dropped the credit expansion target of 19% to 12.6%. The rates under the interests rate corridor have been increased by 1.5% points and the bank rate has been maintained at 8.5%, the policy rate at 7 % and the deposit collection rate at 5.5%. If average interbank interest rate varies by more than 2% with policy rate, repo/reverse repo auction will be announced and if lower by mo...
