Monetary Policy Reviewed 2080/081 by Nepal Rastra Bank: Share Market Investors are happy

Dec Fri 2023 03:06:29

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Monetary Policy Reviewed 2080/081 by Nepal Rastra Bank:  Share Market Investors are happy

Kathmandu. The private sector has given mixed reactions to the monetary policy review announced by Nepal Rastra Bank on Friday. The review, which said that a special policy has been taken to keep the real estate and stock market transactions running, has disappointed the real estate businessmen.

During the review, the central bank has reduced the bank interest rate by analyzing the issues affecting the existing inflation. Accordingly, the bank rate for bank loans to the private sector has been reduced from 7.5 to 7 percent, the policy rate has been reduced from 6.5 to 5.5 percent, and the deposit collection rate has been reduced from 4.5 to 3 percent.

However, there has been no change in the mandatory city ratio and statutory liquidity ratio. Similarly, the risk weight of real estate loans provided by banks and financial institutions and share mortgage loans of more than 5 million rupees has been reduced from 150 to 125 percent.

The president of Nepal Land and Housing Development Federation, Bhesraj Lohani, responded that the review of the policy made him more disappointed by saying that the loan of 50 lakhs will not do anything in the metropolis. Nepal Rastra Bank through the first quarter review of the monetary policy of the current financial year, the Rastra Bank has relaxed the system of share loans. Rastra Bank has made the action direction taken in the annual monetary policy more flexible based on the latest internal and external economic situation and scenario.

Considering the internal economic situation, the current capital loan guidance has been made flexible and implemented. Similarly, in addition to increasing the limit of the first residential house loan, the provisions related to the existing risk burden of the share mortgage loan, real estate loan and hire purchase loan have been relaxed and implemented. Also, the existing limits of share mortgage loans have also been increased. After the above-mentioned policy arrangement, it has been seen that there has been an increase in lending, it has been mentioned in the monetary policy review.

The risk burden of share mortgage loans has also been reduced by the National Bank. "The risk burden of real estate loans provided by banks and financial institutions and share mortgage loans of more than 50 million rupees will be reduced and maintained at 125 percent," it has been mentioned in the monetary policy review. Previously, the provision of such risk weighting was maintained at 150 percent.