The Nepal Rastra Bank has released its third quarterly review of monetary policy, keeping key policy arrangements unchanged to support ongoing economic stability and remittance inflows from abroad.
Kathmandu, Nepal — The Nepal Rastra Bank (NRB), the country’s central bank, unveiled its third quarterly review of the monetary policy, confirming that the major policy frameworks will remain unchanged for the period ahead. This decision reflects the bank’s assessment of macroeconomic conditions, including steady remittance inflows from Nepali overseas workers, which are a critical component of Nepal’s economy.
Despite global economic uncertainties and challenges such as inflationary pressures, the NRB has chosen to maintain existing interest rates and liquidity provisions to support economic activities and financial stability. The stable policy signals a commitment to sustain growth momentum and safeguard the vital flow of remittances, which significantly contribute to Nepal’s foreign exchange reserves and household incomes.
Experts highlight that with over three million Nepalis employed abroad, especially in countries like the Gulf states and India, the steady inflow of remittances is crucial for Nepal’s balance of payments and development financing. The monetary policy review notes that while inflation is to be carefully monitored, maintaining policy stability provides a supportive environment for both investors and overseas workers’ families.
The NRB also emphasizes the need for continued vigilance against external shocks and domestic vulnerabilities, recommending coordination with fiscal policy and structural reforms to enhance economic resilience. This review comes amid ongoing government efforts to improve labor migration management and financial inclusion for remittance recipients.
With no major policy adjustments, businesses and workers relying on stable financial conditions are encouraged to continue contributing to Nepal’s ongoing economic development.
Sources referenced:
- https://therisingnepal.org.np/news/33315