Monetary Policy announcement postponed due to limited discussion time

KATHMANDU: The monetary policy, which was scheduled to be announced today, Friday, has been postponed. According to sources, the delay is due to limited time available for discussion on the policy in the board of directors meeting.

The Nepal Rastra Bank (NRB) had planned to unveil the monetary policy today. The bank’s management committee had approved the policy yesterday, and it was set to be approved by the board of directors this morning before being made public in the afternoon.

However, more time is needed to discuss the policy in the board of directors, leading to the postponement. “More time is needed to discuss this matter in the board of directors, so the possibility of it being made public on Friday has been ruled out,” a source said.

The delay comes after Dr. Yubaraj Khatiwada was appointed as Prime Minister KP Sharma Oli’s economic advisor. Dr. Khatiwada sought consultation on the monetary policy, which contributed to the postponement, another source revealed. The central bank’s board of directors is currently meeting at the central office in Baluwatar. The source also mentioned that the agenda to approve the monetary policy has been removed from today’s meeting.

Prime Minister Oli appointed Dr. Khatiwada as his economic advisor yesterday. Following his appointment, both the Prime Minister and Dr. Khatiwada called the Governor of Nepal Rastra Bank, Maha Prasad Adhikari, for a briefing on the monetary policy. Dr. Khatiwada stated that he did not give any instructions to halt the policy. However, he noted that it is natural for the newly formed government to want to include its perspectives.

The bank’s Asset and Service Management Department had prepared to announce the monetary policy in the newly constructed central office building’s auditorium. This would have been the first time in ten years that the monetary policy was announced in the bank’s own building.