Impact of monetary policy on liquidity, credit and interest rates

Aug Tue 2021 12:40:17

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Impact of monetary policy on liquidity, credit and interest rates

Kathmandu. The Confederation of Banks and Financial Institutions Nepal (CBFIN) has stated that the monetary policy of the Nepal Rastra Bank for the fiscal year 2078/07 has shown signs of impact on the financial sector.

The monetary policy stipulates that the CD ratio should be maintained at 90 percent, including the abolition of the CCD ratio, indicating a lack of liquidity, pressure on credit flows and an impact on interest rates. Similarly, the ambiguity in the definition of margin landing is a clear indication of contraction in the overall economic, industrial, new entrepreneurship and development and expansion of productive economy, said Sivifan.

Other policies, such as the Covid-19 transition, have also helped keep the economy afloat and return to pre-Covid monetary policy.

Sibifin is confident that the current monetary policy will focus on the needs of the country's current heterogeneous situation, taking into account the past and present internal and external economic indicators and scenarios.