Finance Minister Dr. Prakash Sharan Mahat has highlighted that the Monetary Policy introduced for the Fiscal Year 2023/24 will be crucial in stimulating the economy. Nepal Rastra Bank unveiled the policy on Sunday.

The Minister emphasized that the reduction in the interest rate, a key feature of the Monetary Policy, will encourage increased investment from the private sector, leading to a boost in the economy and more job opportunities.

He further stressed the importance of timely awarding of contracts to enhance capital sector spending and achieve the revenue collection targets set for the current fiscal year.

With the policy rate now set at 6.5 percent, the Minister explained that bank interest rates will become more flexible, facilitating a higher flow of capital in the market and thereby revitalizing the economy, which has experienced a slowdown.

He expressed confidence in the government’s development-focused approach and believes increasing capital expenditure will positively impact the economic sector.

With inputs from RSS