Nepal Rastra Bank unveiled its monetary policy for fiscal year 2026/27 this week, adopting a cautiously accommodative stance aimed at boosting private-sector investment and credit expansion. The central bank set a target of 7 percent economic growth and inflation containment at around 5.5 percent for the coming year.
Key interest rates — the policy rate, bank rate, and deposit facility rate — remain unchanged. The Cash Reserve Ratio and Statutory Liquidity Ratio are also held steady. The NRB said it will manage liquidity to keep market interest rates stable and plans to expand bank lending by Rs 652 billion over the fiscal year.
The policy introduces measures to help distressed industries restructure operations and manage non-performing loan portfolios, with the NRB pledging strict monitoring of financial stability. Additional provisions ease the loan-to-value ratio for large electric vehicles used in public transport and raise the unsecured loan ceiling for microfinance borrowers to Rs 1.5 million.