Nepal’s Macroeconomic Indicators Remain Stable in First Half of FY: NRB
Nepal Rastra Bank’s latest macroeconomic report shows low inflation, strong foreign reserves, rising remittance inflows, and stable interest rates during the first six months of the current fiscal year.
Nepal’s key macroeconomic and financial indicators have remained satisfactory, according to the latest Macroeconomic and Financial Situation report published by Nepal Rastra Bank (NRB).
The report, which covers six months of data from July 17, 2025, to January 14, 2026, shows that year-on-year inflation, measured by the Consumer Price Index (CPI), stood at 2.42 percent during the review period, indicating controlled price levels.
Foreign exchange reserves increased to Rs. 3,242.45 billion, equivalent to USD 22.17 billion. NRB stated that the existing reserves are sufficient to finance imports of goods and services for 18.1 months.
On the external sector front, the country recorded a current account surplus of Rs. 429.91 billion, while the overall balance of payments surplus reached Rs. 501.24 billion during the review period.
Remittance inflows showed strong growth, rising by 39.1 percent in Nepali rupee terms and 32.3 percent in US dollar terms. In the Nepali month of Poush alone, remittances worth Rs. 192.62 billion entered the country in the current fiscal year.
External trade performance also improved, with exports increasing by 43.8 percent, while imports grew by 14.2 percent.
In terms of public finance, total government expenditure stood at Rs. 690.22 billion, while revenue mobilization reached Rs. 577.40 billion during the period under review.
Monetary indicators remained stable as well. Broad money supply expanded by 5.4 percent during the review period and by 14.2 percent on a year-on-year basis. Deposits mobilized by banks and financial institutions increased by 5.7 percent, while credit extended to the private sector rose by 3.6 percent.
On an annual basis, deposits grew by 14.8 percent, whereas private sector credit growth was recorded at 6.7 percent.
Interest rates continued to remain low. The weighted average interbank rate among banks and financial institutions stood at 2.75 percent. Similarly, the weighted average interest rate on 91-day Treasury bills remained at 2.35 percent. The average deposit rate of commercial banks was recorded at 3.56 percent, while the average lending rate stood at 7.12 percent, according to NRB.