Formulation and implementation of monetary policy is the major function of the Nepal Rastra Bank. NRB Act, 2002 provided a clear legal and institutional framework for monetary policy. The monetary policy operating procedure was changed in response to the evolving needs of the time. The formulation of monetary policy in Nepal formally received its institutional, legal, and more transparent framework in recent decades only. NRB Act, 2002 broadly provides the guidelines and institutional set up for a monetary policy decision. It mandated the annual announcement of monetary policy by incorporating the review of past policy, programs for the following year, and the rationale for such programs. NRB began the practice of formally announcing and publishing monetary policy statements starting from the fiscal year 2002/03 which was a breakthrough in modernizing monetary policy through a more transparent framework with public dissemination. The overall monetary policy covers financial and foreign exchange policy as well.
By following the same Nepal Rastra Bank on Friday, August 13 has issued the monetary policy for the fiscal year 2078/79.
The full document is below.Monetary-Policy-2078-79-1