Kathmandu. As of mid-April of the current fiscal year, the growth rate of the broader currency provider has reached 15.2 percent.

According to the annual review report of the Monetary Policy for the fiscal year 2082/83 released by the Nepal Rastra Bank, the growth rate of credit to the private sector was limited to 6.5 percent.

The central bank had projected that the broad money supply would grow by 13 percent and credit to the private sector by 12 percent for the current fiscal year.

According to the report, the 10-month average inflation is 2.66 percent. The government had set a target of maintaining average consumer price inflation at 5 percent for the current fiscal year. According to the Nepal Rastra Bank, the year-on-year consumer price inflation stood at 5.04 percent in April 2008.

According to the report, the monetary policy has set a target of maintaining sufficient foreign exchange reserve to sustain the import of goods and services for at least seven months.

The monetary policy for the current fiscal year had made provision to continue the automated and rule-based open market transactions while keeping the weighted average interbank rate as the operating target of the monetary policy.

According to the NRB, the instruments of open market transactions and interest rate corridor have been mobilized as per the need keeping the weighted average interbank rate as the operating target during the review period. The report also states that the open market transactions are being operated in an automated and rule-based manner as per the bylaws and working procedures.

According to the NRB, the monetary policy aims to facilitate the policy in the existing system of being blacklisted due to disrespect of cheques.

Likewise, the Nepal Rastra Bank (NRB) has issued the Directive on Electronic Lending 2078 BS with necessary amendments to the provision that banks and financial institutions can disburse loans on the basis of customer’s credit score.