Kathmandu. Former Governor of Nepal Rastra Bank (NRB), Maha Prasad Adhikari, has said that the monetary policy for the coming fiscal year will be flexible. Adhikari said this while speaking at a discussion on monetary policy at the Finance Committee. 

He said that there is no need to tighten the monetary policy as the overall economic fundamentals of the country are strong at present.

He said that there is no need to tighten interest rates and other monetary instruments because of price stability and satisfactory external conditions. According to him, in the current situation, there is no basis for the Rastra Bank to tighten the bank rate, policy rate or interest rate corridor in the current situation.

Stating that the monetary policy would be formulated only after high-level technical analysis and detailed discussion within the bank,former Governor Adhikari said that the monetary policy for the coming fiscal year would be flexible. 

‘The overall economic situation is very strong at the moment. “In this situation, the monetary policy will be accommodative and flexible in nature when the country is in a slightly stronger position in terms of the central mandate and the inflation within the central bank’s {{} mandate,” he said. ’