Today, the Governor of Nepal Rastra Bank, Prof. Dr. Biswo Nath Poudel, has unveiled the 59th monetary policy of the central bank via a live broadcast on television and social media. This policy represents Governor Poudel’s inaugural significant directive following his appointment.
A prominent feature of the new policy is the enhancement of the individual margin loan ceiling. Previously set at Rs. 15 crore, the margin loan threshold has been increased to Rs. 25 crore. This adjustment comes in response to the requests from share investors who have been pushing for the elimination or elevation of the margin loan limit to encourage broader market involvement.
Moreover, the central bank has indicated a further relaxation in monetary conditions. The upper boundary of the interest rate corridor (bank rate) has been decreased from 6.5% to 6%, while the policy rate has been lowered from 5% to 4.5%. The lower limit of the corridor has also been adjusted from 3% to 2.75%. Nepal Rastra Bank has pledged to maintain the availability of standing liquidity facilities, with more adaptable terms. For FY 2082/83, the central bank anticipates a 13% increase in the broad money supply and up to 12% growth in credit to the private sector.
Furthermore, the policy introduces a relief measure for real estate firms. In the event that these companies are unable to meet loan repayment deadlines, banks will be permitted to restructure the loans by offering revised repayment schedules. This initiative is designed to bolster liquidity and financial stability within the housing and construction industries.
