Nepal Rastra Bank's monetary policy supports a 7% growth target and aims for average inflation of around 5.5%

Background

Nepal Rastra Bank, the central bank, unveiled a flexible monetary policy for FY 2026/27.
It supports the government's target of 7% economic growth and aims to hold average inflation at around 5.5% in the fiscal year.
It aims to keep foreign exchange reserves sufficient to cover at least seven months of imports of goods and services.
The bank rate, policy rate and standing deposit facility rate remain unchanged, and the CRR and SLR have also been left intact.
Governor Dr. Bishwo Nath Poudel said commercial banks will be encouraged to invest in foreign government securities to absorb excess liquidity.