Nepal Rastra Bank (NRB) unveiled its monetary policy for fiscal year 2026/27, describing it as 'cautiously accommodative.' The policy sets a target of expanding bank lending by Rs 652 billion during the year and projects average inflation at around 5.5%. NRB Governor Dr. Bishwo Nath Poudel said the central bank will adopt a flexible approach to encourage economic activity while maintaining price stability.
Key measures include easing lending conditions for large electric public vehicles, raising microfinance loan ceilings, and introducing provisions to help viable distressed industries restructure operations and manage non-performing loan portfolios. The policy also directs banks and financial institutions to accelerate digitalization to improve efficiency and reduce service delivery costs.
The policy is framed around supporting the government's 7% GDP growth target for the coming fiscal year. NRB stated it believes that target is achievable if global economic conditions remain stable and investor confidence strengthens, though it flagged risks including geopolitical tensions, higher inflation in India, and climate-related hazards.