Nepal Rastra Bank Prepares for First Quarterly Review of Monetary Policy

The Nepal Rastra Bank (NRB) is preparing for the first quarterly review of the monetary policy for the current fiscal year. Through quarterly and half-yearly reviews, the central bank analyzes the country's monetary situation and makes necessary adjustments to its policies. This time, the review is expected to be released by the first week of Mangsir. Investors in the stock market and the banking sector are hopeful that some flexible policies will be introduced.

NRB Preparing for Review: The Nepal Rastra Bank is engaged in preparing the first quarterly review of the monetary policy. It is anticipated that some amendments will be made to the monetary policy for the current fiscal year.

Mandatory Quarterly and Half-Yearly Reviews: The central bank is required to conduct quarterly and half-yearly reviews of the monetary policy. The quarterly review is published within 45 days after the end of each quarter.

Internal Preparations: The Economic Research Department of the central bank is preparing a draft of the review. After the draft is ready, it will be sent to the management committee, which will finalize it and submit it to the board. The review will only be made public after approval from the board meeting.

Review Expected by First Week of Mangsir: The Nepal Rastra Bank has indicated that the monetary review may come by the first week of Mangsir. The banking and other markets are expecting some flexibility in the policies.

Expectations Regarding Margin Loans: Investors in the stock market are hoping that the current cap on margin loans will be removed and the risk weightage on such loans will be reduced. This is expected to bring more enthusiasm to the stock market and boost investor confidence.

The quarterly review by Nepal Rastra Bank is expected to bring some flexibility to the economic sector. It is believed that this will have a positive impact on the stock market, banking, and other markets, and contribute to better monetary management.