November 29: The Nepal Chamber of Commerce (NCC) has noted that the recent arrangement made by the Nepal Rastra Bank (NRB) through the quarterly review of the monetary policy could not keep fiscal stability in the country.
The NCC has drawn a conclusion that the quarterly review along with the squeezed monetary policy could not address the problems faced by the financial sector.
"The chamber was hopeful that the quarterly review of the monetary policy could possibly address the domestic economic risks," reads a statement issued by the chamber. "Though the country witnessed some improvements in external sector there are risks in internal economic sector," the statement added.
The NCC claimed that the central bank's latest measure would not help boost the economic dynamics in the country.
Though the spread rate reduction by 0.4 percent would limit rise in interest rate in coming days, it has nominal chance to slash the existing interest rates, the chamber further commented.
The NCC has urged the central bank to keep premium on base rate maximum at two percent for the banks and financial institutions (BFIs) to release loans.
The NCC also noted that the central bank’s review of the monetary policy would further negatively affect the industrial sector.
The chamber has cautioned the central bank with seven-point memorandum. It has also asked the central bank to reduce the existing 8.5 percent bank rate to five percent. -- RSS