Challenges to the new monetary policy

The protracted crisis of loanable liquidity in the banking system shows no signs of abating.

Nepal Rastra Bank has issued a notice asking for "opinions and suggestions" on the upcoming monetary policy for the next fiscal year 2022-23. Undoubtedly, these are challenging times for the Nepali economy due to its chronic and deepening vulnerabilities coupled with emerging global economic adversities triggered particularly by the protracted Russia-Ukraine war.