Bank's Interest rates continue to be rise : Governor (Maha Prasad Adhikari)

Jun Mon 2022 12:54:57

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Bank's Interest rates continue to be rise : Governor (Maha Prasad Adhikari)

Kathmandu. Governor of Nepal Rastra Bank Maha Prasad Adhikari has said that the interest rate of banks may increase further. Speaking at a program organized in Kathmandu on Wednesday, he said that interest rates of banks would continue to rise. He opined that industrialists should also accept the rise in interest rates.

He said that the current crisis can be faced only if all the parties responsible for the economy are honest in their responsibilities. He also questioned who is running the debt of 107 percent of the GDP. Similarly, Governor Adhikari said that it is natural for the industry and business sector to be affected when the economy fluctuates now, adding that the private sector is now in the comfort zone more than two years ago.

Governor Adhikari said that Nepal could reach the same situation as Sri Lanka if it could not bring in foreign exchange equivalent to imports. He said that Nepal would also be in the situation of Sri Lanka if it could not bring in foreign exchange equivalent to imports as it was depleting its foreign exchange reserves.

He said that the country's economy would come into rhythm only if all including industrialists and businessmen think of increasing production in Nepal and earning foreign exchange by exporting instead of importing. Governor Adhikari said that the country's foreign exchange reserves are declining due to remittances being imported from abroad instead of production.