Kathmandu: The Confederation of Nepalese Industries (CNI) has welcomed the decision of Nepal Bankers’ Association to reduce the interest rate.

Issuing a press statement on Thursday, the NBA said that move to reduce the loan’s interest rate is positive at a time when there is a crisis of capital for investment in economy, non-performing loan is on the rise and the private sector’s confidence is crumbling.

The CNI has also said that decision to decrease the interest rate is a matter of happiness as the demand is shrinking and plans for new investments are postponed due to higher interest rate.
“The CNI has been calling for slashing the interest rate to boost up economy and increase the private sector’s morale. The decision will be supportive to bring back the economy on right track from the challenging situation,” according to the CNI.

Likewise, the CNI has expressed its belief that investment will be expanded in the businesses and industrialists’ morale will remain high from the decision to decrease bank loan’s interest rate.
Furthermore, the CNI has hoped that the economy shall remain vibrant from the increased demand and more investment by the investors, thanks to decrease in the interest rate.

The CNI has also urged the central bank to ensure policy reforms in the monitory policy through its biannual review for sufficient liquidity in the market.