Kathmandu, July 13

The Institute for Strategic and Socio-Economic Research (ISSR) has said that the Monetary Policy for fiscal year 2017-18 does not ensure the stability of current economic growth indicators in the next year.

Issuing a press statement here today, ISSR said that the Monetary Policy for the next fiscal has not adopted measures to sustain the economic growth forecast of 7.2 per cent in the next year.

“Instead of making the lending policies of banks and financial institutions more flexible, the monetary policy has rather tightened it,” the ISSR press statement reads.

Similarly, the ISSR officials also said that the monetary policy for the next fiscal has given continuity to various provisions that were adopted in the previous monetary policy when the economic growth rate was low.

“With the progress that the country has achieved in terms of economic growth this year, the monetary policy should have incorporated measures to sustain this growth in the upcoming days,” the ISSR has said.

However, ISSR has said that the direction given to the banks and financial institutions to increase lending in productive sector is a positive aspect of the monetary policy.