Nepal, Aug. 20 -- 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.

Among others, the existing moratorium on loan repayment was extended by six months to two years. The central bank's refinance facility was raised and concessional rates were introduced. Banks and financial institutions' CCD (credit to core capital plus deposit) ratio was raised from 80 percent to 85 percent. The cash reserve ratio was cut from 4 percent to...