NRB signals stable rates but flags external risks as Nepal nears new monetary policy

www.fiscalnepal.com · 1 week ago

Nepal Rastra Bank (NRB) has indicated a continuation of accommodative monetary policy, stable interest rates, and adequate liquidity, despite warning of growing external risks from global geopolitical tensions and rising petroleum prices. The central bank reported that inflation remains under control, foreign exchange reserves are strong, and liquidity in the banking system is sufficient, with reserves projected to finance 18.4 months of imports. However, NRB cautioned that Nepal is vulnerable to global energy price shocks, which could increase import costs and pressure inflation, while acknowledging a moderate rise in non-performing loans within the banking sector.