Private sector’s mixed reaction to monetary policy

Kathmandu, July 11 . The private sector’s leaders have expressed mixed reactions to the monetary policy unveiled by the central bank today for the fiscal year 2075/076 BS. The business persons and banks have made their diverse responses on the monetary policy.

President of Nepal Bankers’ Association Gyanendra Dhungana termed the monetary policy positive adding that it is expansionary. It has addressed the crunch of money for investment and has ensured stability in the interest rate.

Dhungana is the of the view that interest rate of the loan would be less due to reduced spread rate, which results in more investment. “Economic development rate and inflation are separate entities. Inflation could rise due to targeted economic growth rate. The inflation of 6.5 per cent per annum for the developing nation could be considered general,” he added.

Likewise, senior vice president of Federation of Nepalis Chamber of Commerce and Industries (FNCCI) Shekhar Golchha said that the coming days would be more positive as the economy was on the right track. He, however, said that the balancing balance of payment and tapping inflation in 6.5 per cent could be challenging.

Similarly,Vice-President of Nepal Chamber of Commerce Kamalesh Kumar Agrawal termed that the monetary policy was expansionary and balanced adding that attention should be paid for its implementation.

Making comments on the monetary policy, Chief Executive Officer of Citizens Bank International Rajansingh Bhandari, Acting CEO of NABIL Bank Anil Keshari Shah, CEO of Bank of Kathmandu Shobhan Dev Panta and CEO of Mahalaxmi Development Bank Krishna Raj Lamichhane said that the monetary policy was positive in general and expressed the hope that it would help ensure liquidity in the market.