Macroeconomic Indicators Remain Strong in First Half of Current Fiscal Year: NRB Report

Nepal’s key macroeconomic and financial indicators remained largely stable in the first six months of the current fiscal year, supported by low inflation, strong foreign exchange reserves and a healthy balance of payments position, according to a report released by the Nepal Rastra Bank (NRB) on Monday.

The Current Macroeconomic and Financial Situation Report, based on data from mid-July 2025 to mid-January 2026, shows that year-on-year inflation stood at 2.42 percent during the review period compared to 5.41 percent a year ago.

Total foreign exchange reserves reached Rs 3,242.45 billion, equivalent to USD 22.17 billion. Based on imports during the first six months of FY 2025/26, the reserves are sufficient to cover 21.4 months of prospective merchandise imports and 18.1 months of merchandise and services imports, the central bank said.

During the review period, the current account recorded a surplus of Rs 429.91 billion, while the balance of payments also remained in surplus at Rs 501.24 billion.

Remittance inflows grew sharply, increasing by 39.1 percent to Rs 1062.93 billion in the first six months of 2025/26 compared to an increase of 4.2 percent in the same period of the previous year.  During mid-December to mid-January, remittance inflows stood at Rs. 192.62 billion. In the same period of the previous year, remittance inflows were Rs 122.44 billion.

Foreign trade performance also improved, with exports rising by 43.8 percent, while imports increased by 14.2 percent, according to the report.

On the fiscal front, total government expenditure reached Rs 690.22 billion, while revenue mobilization stood at Rs 577.40 billion during the period.

Monetary indicators showed moderate growth, with broad money supply increasing 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 grew by 5.7 percent, while credit to the private sector expanded by 3.6 percent.

Regarding interest rates, the weighted average interbank rate stood at 2.75 percent, while the weighted average interest rate on 91-day Treasury bills was 2.35 percent. The weighted average deposit rate of commercial banks was recorded at 3.56 percent, while the lending rate averaged 7.12 percent, the NRB report stated.