KATHMANDU, Nov 29: The Nepal Chamber of Commerce(NCC) has noted that the recent arrangement made by the Nepal Rastra Bank (NRB) through the quarterly review of the monetary policy could not keep fiscal stability in the country.
The NCC has drawn a conclusion that the quarterly review along with the squeezed monetary policy could not address the problems surfaced in the financial sector.
"The Chamber was hopeful that the quarterly review of the monetary policy could possibly address the domestic economic risks", stated a release issued by the Chamber. "Though the country witnessed some improvements in the external sector there had been risks in the internal2 economic sector", the statement added.
Revised interest rate corridor system introduced
The Chamber claimed that the central bank's latest measure would not help boost the economic dynamics in the country.
Though the spread rate reduction by 0.4 percent would limit the rise in interest rate in coming days, it has a nominal chance to slash the existing interest rates, the Chamber further commented.
The Chamber has urged the central bank to keep the premium on base rate maximum at two percent while releasing loans by the Bank and Financial Institutions.
It has also noted that the central bank review on monetary policy would further negatively affect the industrial sector.
The Chamber has cautioned the central bank with a seven-point memorandum. It has also asked the central bank to reduce the existing 8.5 percent bank rate to five percent.
(RSS)
