Third Quarter Monetary Policy Review: Central Bank Maintains Flexible Stance Amid Excess Liquidity
Summary
Nepal Rastra Bank maintains an accommodative monetary policy amid surplus liquidity and moderate credit growth, projecting 3.85% economic growth despite inflationary pressures from rising fuel prices due to Middle East geopolitical tensions.
Key Points
- Nepal Rastra Bank reports stable monetary and financial sector despite surplus liquidity and moderate private sector credit growth.
- Economic growth for fiscal year projected at 3.85% with industrial and service sectors leading growth.
- Inflation recorded at 4.47%; rising fuel prices due to Middle East conflict expected to increase inflationary pressure.
- Central bank maintains accommodative monetary policy and intends to review standing deposit facility to enhance effectiveness.
