Kathmandu, July 7: The central bank on Tuesday announced a flexible monetary policy for the upcoming fiscal year to support the government’s target to achieve 7 per cent economic growth rate.
The outlook for Nepal’s economy in 2026/27 seems to be favorable, supported by increased economic activity to be driven by proposed government policy reforms, improved private-sector confidence, and rising consumption and investment demand, the central bank stated.
Assuming stabilized global economic conditions and restored investor confidence, the government’s projection of 7 percent economic growth is achievable.
The inflation is projected to average around 5.5 percent in 2026/27, with upside risks stemming from renewed geopolitical tensions and higher than expected inflation in India. Therefore, the Nepal Rastra Bank persists continuation of its cautiously accommodative monetary policy stance.
Announcing the new monetary policy, Governor of the Nepal Rastra Bank, Dr Bishownath Poudel, said the monetary policy was unveiled to support the target of the economic growth rate planned by the government in the fiscal year 2083/84 BS.
Saying that the bank and financial institutions have invested almost Rs 6000 billion in loan, Governor Poudel announced that Rs 652 billion in loan would be expanded in the upcoming fiscal year to meet the government’s target set for economic growth.
Likewise, at a press meet here on Tuesday, Spokesperson of NRB, Guru Prasad Poudel, said the monetary policy is brought as to support the government’s target of 7 per cent economic growth rate. “The monetary policy will be supportive to meet the government target,” he added.
The monetary policy has taken the policy to promote troubled industries if they wished to run with new planning and vision. The central bank has taken the measures for the management of non-recovering credit portfolios for the troubled industries.
The monetary policy also includes fiscal costs of the banks and financial institutions through digitalization to enhance the returns to the customers. #nepal #rss
