NRB rolls out growth-focused monetary policy, aims to fuel 7% expansion – The Himalayan Times – Nepal’s No.1 English Daily Newspaper

KATHMANDU, JULY 8

The Nepal Rastra Bank has introduced a more flexible monetary policy for the upcoming fiscal year, betting on stronger private-sector confidence, higher investment and increased lending to help the economy achieve the government’s 7 percent growth target.

Unveiling the policy, NRB Governor Dr Bishwo Nath Poudel said the central bank had adopted a cautiously accommodative stance to support economic expansion while maintaining macroeconomic stability. The policy projects average inflation at around 5.5 percent during the fiscal year, although it warns that geopolitical tensions and higher inflation in India could pose upside risks.

The central bank said Nepal’s economic outlook for 2026/27 remains favourable, supported by government policy reforms, stronger domestic demand, rising investment and improved confidence in the private sector. It added that the government’s 7 percent growth target is attainable if global economic conditions remain stable and investor confidence strengthens.

To support higher economic activity, the NRB plans to expand bank lending by Rs 652 billion in the new fiscal year. Commercial banks and financial institutions have already extended nearly Rs 6 trillion in credit to the economy.

The monetary policy also introduces measures to help revive distressed industries by allowing viable businesses to restructure operations and facilitating the management of non-performing loan portfolios.

In addition, the central bank has encouraged banks and financial institutions to accelerate digitalisation to improve operational efficiency, lower service delivery costs and enhance returns for customers.

Speaking at a press briefing, NRB spokesperson Guru Prasad Poudel said the monetary policy was designed to complement the government’s economic agenda by supporting investment, production and overall growth while safeguarding financial stability.