Nepal hikes rates and constricts credit
Himalayan country confronts rising inflation and strained reserves
Nepal’s central bank announced its monetary policy for the 2022–23 fiscal year on July 22, raising the policy rate by 150 basis points to 8.5%.
Nepal Rastra Bank also announced a more restrictive target for credit growth. This is its second increase this year, after it raised rates from 5% to 7% in February.
The central bank also imposed more restrictive reserve conditions on lenders, requiring them to have a 4% cash reserve, up from 3%. The statutory liquidity ratio for commercial banks will
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