Nepal’s monetary policy has set appropriate stance to maintain price, external stability: IMF staff team

KATHMANDU: An International Monetary Fund (IMF) staff team that visited Nepal recently said the country's cautious and data-driven monetary policy has set an appropriate stance to maintain price and external stability. The IMF staff team led by Tidiane Kinda visited Kathmandu from July 20 to 26 to discuss recent macroeconomic developments and the implementation of the Fund-supported programme. At the conclusion of the visit, the statement issued by Kinda said, “Following an economic slowdown last year, growth is projected to rebound in the fiscal year 2023/24, inflation is expected to recede, and the external position will continue to strengthen. Cautious and data-driven monetary policy has set an appropriate stance to maintain price and external stability. Continued vigilance on banks’ asset quality and stepping up supervisory efforts remain key to preserving financial stability. Prudent execution of the current fiscal year 2023/24 budget is crucial to secure fiscal sustainability. Implementing measures envisaged in the budget for the current fiscal year would improve the efficiency of capital expenditure." “The authorities’ ongoing efforts in meeting key commitments under the Fund-supported programme, with the support of IMF’s technical assistance, are welcome,” read the statement. “Performance under the programme will be formally assessed in the context of the third review of the Extended Credit Facility, which is expected to be undertaken later this year.” The IMF team during the Nepal visit held meetings with Finance Minister Prakash Sharan Mahat, Nepal Rastra Bank (NRB) Governor Maha Prasad Adhikari, National Planning Commission (NPC) Vice-Chairman Min Bahadur Shrestha, and other senior government and central bank officials. The IMF team also met with representatives from the private sector and development partners. The views expressed by the IMF staff do not necessarily represent the views of the IMF’s Executive Board, the statement said. READ ALSO:

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