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Monetary Policy in Nepal: Name: Kajal Kumari Shah BBA, 2 Semester Symbol No.35114/22

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0% found this document useful (0 votes)
16 views6 pages

Monetary Policy in Nepal: Name: Kajal Kumari Shah BBA, 2 Semester Symbol No.35114/22

Uploaded by

anishbaral192
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Monetary policy in

Nepal
Name: Kajal Kumari shah
BBA ,2nd semester
Symbol No.35114/22
INTRODUCTION

 Monetary Policy is a set of actions to control a nation’s overall money


supply & achieve economic growth Monetary Policy strategies include
revising interest rates & changing bank reserves requirements.
 Monetary Policy involves influencing interest rates & exchange rates
to benefit a country’s economy. This is done by Central Bank
controlling the supply of money in the economy.
STATEMENT OF PROBLEM

 Why economic growth is increase in national income ?


 What was the Systematic record of economic Transaction in the
domestic country.
 Why price stability is important?
OBJECTIVE

 Economic growth Means an increase in GDP, PCI and NI.It refers to


reduction Of poverty , inequality and unemployment. Monetary policy
is help to support sustainable economic growth by managing
interest rates And money supply.
 Balance of payment Is systematic record of all economic transactions
Visible and invisible in a period between One country and rest of the
world.
 Price stability is the one of the most important goal of a monetary.
policy The central bank keep Price steady so that the value of money
doesn’t change money to much.
Methodology
 The Cash Reserve Ratio (CRR), which is the minimum cash that BFIs
must maintain as deposit at NRB, has been increased from 3% to 4%
of the total deposit base of a bank.
 Cash Reserve Ratio has been increased by 1 percentage point. Banks
& Financial institution shall maintain a CRR of 4% which is to be made
effective from Bhadra 1st, 2079.
 Rate under the Interest Rate Corridor (IRC) increased by 1.5 %. Policy
rate, IRC Rate and Deposit Collection rate .

Based on secondary data


Conclusion

As the macroeconomic indicators deteriorated in the past, it has


increased uncertainty regarding the prospect of a full economic recovery.
The monetary policy has adopted cautionary tightening by raising
interest rate to promote macroeconomic stability while maintaining price
and external sector stability. The liquidity condition is expected to stay
tight as credit growth targets have been revised downwards to control
for increasing trade deficit and inflation. Promoting development of
productive sector will contribute towards generating employment and
achieve sustainable economic growth in the long run.

Thank you

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