Friday, May 23, 2025

Decisions must be predictable: Governor Poudel

Kathmandu, May 22

Dr. Biswo Nath Poudel, the newly appointed Governor of the Nepal Rastra Bank (NRB), has stated that policies of the central bank, including monetary policy, will be formulated on the basis of policy stability and consultations with stakeholders.

During a meeting held at the central bank on Wednesday with a delegation from the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Governor Dr. Poudel said that decisions made by the central bank would be predictable.

The FNCCI delegation reached the central bank to congratulate the newly appointed governor.

“The private sector is the driving force of the economy. Stability is essential to keep the economy dynamic. Decisions must be predictable. Rather than taking abrupt decisions in the banking sector, I believe that policy stability can be ensured by engaging in discussions with relevant stakeholders,” he said according to a statement issued by the FNCCI.

Governor Dr. Poudel further noted that the central bank would play a key role in revitalising the economy.

President of the FNCCI, Chandra Prasad Dhakal, suggested that the central bank introduce investment-friendly and confidence-building measures. He stressed that the NRB should work towards creating an investment-friendly environment and contributing to the nation’s economic prosperity.

“In the current fiscal year, despite low interest rates on loans, credit expansion has been sluggish. To boost the morale of the private sector, both monetary and non-monetary measures need to be adopted. Policy instability remains a major obstacle to investment,” said Dhakal.

The FNCCI informed the Governor that high interest rates in previous years had led to an increase in non-performing loans in the current fiscal year, as both businesses and the general public struggled to repay instalments. As a remedy, they suggested that arrangements be made for loan restructuring and rescheduling.

On the occasion, FNCCI’s Immediate Past President, Shekhar Golchha, pointed out that, despite positive signs in most economic indicators, the overall economy had failed to gain momentum. He urged the central bank to take a proactive role in stimulating the broader economy.

Likewise, Senior Vice President, Anjan Shrestha, recommended that the liquidity available in banks be channelled into productive sectors and that there should be a differentiation in interest rates for loans provided to industries and businesses.

Published in The Rising Nepal daily on 23 May 2025. 

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