Bangladesh, July 8 -- Nepal Rastra Bank (NRB) has estimated that the credit demand from the private sector will grow by 11 percent in the next Fiscal Year (FY). The projection stands in stark contrast to the past policies of the central bank, which failed to boost private sector lending of the banks and financial institutions (BFIs) in the last few years.

Unveiling the Monetary Policy for FY 2026/27 on Tuesday, the NRB has set an ambitious target once again amid poor confidence of the private sector. According to the NRB, private sector credit growth has remained modest at around 6 percent against the 12 percent projected in the monetary policy for this FY.

While the government's projection of achieving a seven percent economic growth ...