What is monetary policy?
Monetary policy is the macroeconomic policy laid down by the central bank. It involves the management of money supply, interest rate and is the demand side economic policy used by the government of a country to achieve macroeconomic objectives like inflation, consumption, growth, and liquidity.
Monetary policy in Nepal
Nepal Rastra Bank has unveiled the monetary policy of the fiscal year 2076/77 on Wednesday. Governor Dr. Chiranjibi Nepal unveiled the policy. Dr. Chiranjibi also said that the central bank offers attractive facilities for big bank id the go for the merger.
The Monetary Policy 2076/77 has made it mandatory for commercial banks to issue debentures/corporate bonds amounting to 25 percent of their paid-up capital by end of the fiscal. The central bank has said that necessary mechanisms will be introduced to ensure the funds raised through corporate bonds will be used to disburse loans.
Find out more below-