Nepal Rastra Bank Reviews Monetary Policy for FY 2082/83
Summary
Nepal Rastra Bank's annual review for FY 2082/83 reports an average inflation rate of 2.66%, strong foreign exchange reserves covering over 19 months of imports, and adjustments in policy rates to manage liquidity.
Key Points
- Nepal Rastra Bank aimed to maintain inflation around 5.0% but recorded 2.66% average inflation in the first ten months of FY 2082/83.
- Foreign exchange reserves cover 22.6 months of merchandise imports and 19.2 months of merchandise and service imports.
- Broad money supply grew by 15.2%, surpassing the targeted 13.0% growth for FY 2082/83.
- Policy rate reduced from 5.0% to 4.5%, bank rate from 6.5% to 6.0%, and deposit collection rate from 3.0% to 2.75% to manage market liquidity.
