In July 2015, NRB quadrupled the minimum capital requirements for BFIs in order to promote financial stability, mobilize the resources needed for the long-term development financing as well as to encourage merger and acquisition of BFIs. 14. The NRB is of the view that the expansion of the financial sector will be constrained without the growth of the real sector.
In order to make monetary policy effective, a balance is required between the need to be ahead of the curve in view of the lags in the effect of monetary policy, and the need to respond immediately to real developments rather than the “noise” in the data. So after all the warnings about forecasting, the time has come to present the forecast.