Nepal Rastra Bank released its annual monetary policy review for fiscal year 2025/26 on July 7, 2026. The review found that broad money supply expanded by 15.2 percent, exceeding the initial projected ceiling of 13 percent, while private sector credit growth remained at just 6.5 percent — well below the forecast target of 12 percent.
The NRB noted that while revenues are sufficient to cover regular government administration, capital expenditure remains deeply suppressed. The review also flagged that the government is reportedly using a significant portion of new borrowing to service existing debt rather than directing funds toward infrastructure investment.
Foreign exchange reserves reached a level sufficient to sustain commodity and service imports for 19.2 months, far exceeding the baseline target of seven months, supported in part by steady remittance inflows.