Kathmandu, May 27
According to the Nepal Rastra Bank, the economy has grown more active as a result of the local elections.
The Nepal Rastra Bank made these observations while releasing the third quarterly monetary policy review.
The Bank of Nepal has indicated that since the risk of Covid-19 infection has decreased,
economic activity has begun to grow.
The current fiscal year’s GDP growth rate is expected to be 5.84 percent, according to the Central Statistics Office. Prices have been put under pressure as a result of local elections.
Inflation has stayed within the target range for the first nine months of the current fiscal year, according to the Nepal Rastra Bank (NRB).
In March 2022, inflation was 7.28 percent, up from 3.10 percent in March 2021.
Pressure on the outer area While the large growth in imports and remittance inflows has remained consistent, the external sector is still under pressure, according to the Nepal Rastra Bank.
The current account and balance of payments deficits have increased in the foreign sector. The capacity of foreign exchange reserves to fund imports has also declined, according to the Nepal Rastra Bank.
