Central bank prepares monetary policy for FY 2083/84, Seeks public and stakeholder suggestions

KATHMANDU: The Nepal Rastra Bank has initiated preparations for the formulation of the Monetary Policy for the upcoming fiscal year 2083/84, inviting feedback and suggestions from stakeholders and the general public.

The central bank has set June 5 (Asar 5) as the deadline for submitting recommendations, while the Monetary Policy is expected to be unveiled by mid-July (Asar 15), shortly after the announcement of the national budget.

According to a notice issued on Friday, the central bank has formally opened the consultation process, urging input from individuals, businesses, financial institutions, and other concerned stakeholders. Suggestions can be submitted via email and other designated channels.

The move comes just eight days after the government unveiled the national budget, signaling the start of the monetary policy formulation cycle, which plays a crucial role in shaping liquidity management, interest rate direction, credit growth, and overall financial stability in Nepal.

Public consultation process underway

The Nepal Rastra Bank stated that all received suggestions will be reviewed and analyzed in detail before finalizing the policy framework for FY 2083/84. The central bank typically integrates macroeconomic conditions, inflation trends, external sector stability, and banking sector liquidity while drafting the policy.

The consultation process is expected to include inputs from commercial banks, insurance companies, industry associations, and individual stakeholders.

Among the financial sector stakeholders, institutions such as Global IME Bank, Nepal Life Insurance, and corporate entities including Tata are among those likely to engage in policy feedback discussions, given their exposure to credit markets and investment flows in Nepal.

Focus on liquidity, credit growth, and stability

The upcoming Monetary Policy is expected to address key macro-financial challenges including liquidity management in the banking system, credit expansion trends, inflation control measures, and exchange rate stability.

Financial analysts expect the policy to strike a balance between supporting economic growth and maintaining price stability, especially as Nepal continues to navigate post-budget fiscal adjustments and external sector pressures.

Stakeholders are particularly watching for possible adjustments in interest rate corridors, regulatory easing or tightening measures, and provisions affecting lending to productive sectors such as energy, tourism, and small and medium enterprises (SMEs).

Email-based submission of suggestions

The central bank has confirmed that suggestions can be submitted electronically, making the consultation process more accessible to a wider range of participants, including individual economists, researchers, and business owners.

After the deadline for submissions closes, the central bank’s policy drafting team will conduct an internal review before finalizing the Monetary Policy for FY 2083/84.

The policy is expected to be one of the key economic instruments shaping Nepal’s financial sector direction for the upcoming fiscal year.