Monetary policy’s misguided focus

Authorities are trying to placate investors that are desperate for higher prices.

On balance, the July 17 monetary policy for the fiscal year 2020-21 drew more praise than criticism. Nepal Rastra Bank delivered the policy at a difficult time. In an economy badly hit by the Covid-19 pandemic, everyone was hoping for relief measures. It is impossible to please everyone. Still, kudos to the bank’s new leadership—the policy drew more cheers than jeers.