Unbiased Summary and Interpretation of Central Bank’s Mid-term Monetary Policy Review – |

Nepal Rastra Bank has unveiled the mid-term review of the monetary policy for the fiscal year 2078/79.

While economic activities had begun to resume after apparent recovery from the initial wave of Covid-19 infection, the review states that the new Omnicron variant has again raised the need to proceed with caution.

The mid-term review states that keeping inflation to healthy levels remains a challenge amidst rising petroleum and consumer prices in the international market. The central bank planned to keep inflation contained below 6.5% for the fiscal year. In the six months of the fiscal year, the average inflation has been 5.03%.

The banking economy has seen a constriction in deposit collection and a…