July 22: Former governors of Nepal Rastra Bank (NRB) have expressed that the central bank should have unveiled the monetary policy with the start of the new fiscal year.
Stating that the monetary policy should be in line with the amended budget brought after the change of the finance minister, the former governors suggested the NRB to introduce the new monetary policy as soon as possible without deviating from its duties. They also stressed the need for the NRB to formulate a policy without losing its autonomy.
The former governors made such suggestions during a virtual discussion organized on Wednesday regarding the central bank’s preparations for unveiling the monetary policy for the current fiscal year. NRB Spokesperson Dev Kumar Dhakal said that the central bank has collected suggestions from former governors on the current economic situation and policies needed to be addressed by the monetary policy.
"They have adequate experience of preparing monetary policy. The virtual discussion was held to collect their suggestions on what kind of policy would be appropriate. We have done the work of collecting the feedback. We will bring the monetary policy as soon as possible by coordinating with the Ministry of Finance. "
The monetary policy was supposed to be made public in the third week of July, but it was delayed due to the change of the finance minister.
Economists have been advising NRB Governor Maha Prasad Adhikari not to bring monetary policy immediately due to the change of government. But the NRB denied that the finance minister's directive delayed the monetary policy. Spokesperson Dhakal said that it was not true and that they were working on monetary policy internally and were in the final stages of preparation.
The former governor drew the attention of NRB to remain alert as the government was likely to bring a populist budget.
The former governors also pointed out that it is important to see where the investment money is coming from as the capital market will be bullish in the days to come. The daily turnover of the stock market exceeded Rs 21 billion.
In addition, they also suggested that commercial banks should be required to issue at least 25 percent of their paid-up capital as debentures.
Former Governors Himalaya Shamsher J.B Rana, Ganesh Bahadur Thapa, Bhesh Bahadur Thapa, Dipendra Bahadur Chhetri, Dipendra Purush Dhakal, and Tilak Rawal were present at the discussion organized by the central bank to seek suggestions on monetary policy.