Kathmandu, July 23:

Nepal Rastra Bank is disclosing the monetary policy for the current fiscal year 2023/24 today at 3 PM. The Central Bank is organizing a news conference at 3 pm to publicize it.

A meeting of the Board of Governors of NRB this morning endorsed the monetary policy. Monetary policy is a set of tools used by a nation's central bank to control the overall money supply and promote economic growth and employ strategies such as revising interest rates and changing bank reserve requirements.

The NRB has said that they plan to focus on flexibility in monetary instruments to maintain the reforms in the external sector in the new monetary policy.

Officials of the Rastra Bank say that by keeping the Cash Reserve Ratio (CRR) unchanged at 4 percent, interest rates under the interest rate corridor, including the policy rate, are decreasing and inflation can be reduced.

As the quality of loans is decreasing, officials of Nepal Rastra Bank have been saying that recovery should be done instead of loan expansion.