
The NEPSE Journal
Market commentary, data deep-dives, and trading notes from the NEPSE Trading desk.

The Nepal Rastra Bank projects 4.0% GDP growth for FY 2024/25, signaling steady economic recovery. Supported by low inflation (1.87%), strong remittance inflows, and stable reserves (Rs. 2.88 trillion), the economy is regaining balance. While the outlook remains positive, sustained reforms in investment, infrastructure, and production are essential to maintain momentum in FY 2025/26.

As per NRB’s Mid-September 2025/26 data, the average deposit rate has fallen to 3.96%, and the lending rate declined to 7.66%, supported by ample liquidity and low inflation at 1.87%. Total deposits rose to Rs. 7.29 trillion, while private-sector credit reached Rs. 5.54 trillion. The easing rates reflect a stable and accommodative monetary environment, signaling renewed confidence in Nepal’s financial system.

According to NRB’s mid-September 2025/26 review, Broad Money (M2) expanded by 12.4%, indicating robust liquidity and monetary stability. With inflation down to 1.87% and interest rates easing, Nepal’s banking system shows signs of recovery. Rising deposits, controlled credit growth, and a stable exchange rate environment have positioned the economy for gradual expansion while keeping inflationary risks low.

Nepal’s inflation rate dropped to 1.87% in mid-September 2025/26, driven by falling food prices and easing global costs. Exports and remittances surged, while foreign reserves reached record highs. Interest rates have fallen, liquidity improved, and the stock market gained modestly. Despite the positive outlook, fiscal pressures and weak revenue growth remain key policy concerns for sustaining economic stability.