Country Report Nepal May 2011

Outlook for 2011-12: Monetary policy

Nepal Rastra Bank (NRB, the central bank) has said that Nepal's monetary policy is designed to promote economic growth "through price [stability] and external sector stability" and to maintain financial sector stability through the development of a sound and healthy financial sector. The main policy focus is the maintenance of the Nepali rupee's peg to the Indian rupee. NRB will therefore continue to conduct open-market operations in order to monitor and adjust the money supply in support of the currency peg and to help control inflation.

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