Central bank maintains key policy rates, flags external risks
Summary
Nepal Rastra Bank maintains key policy rates amidst steady economic growth and inflation within target, while highlighting external risks from geopolitical tensions and regional instability.
Key Points
- Nepal Rastra Bank retains key monetary policy instruments unchanged in the third quarterly review.
- Economic growth is projected at 3.85 percent for the current fiscal year with improved aggregate demand.
- Inflation remains within target at an average of 2.39 percent, though global tensions may pressure prices upward.
- External sector improved due to rising remittance inflows, but reliance on West Asia remittances poses risks amid regional instability.
