Kathmandu: Nepal Rastra Bank (NRB) Governor Maha Prasad Adhikari described the country's current economic condition as moderate during a program commemorating the 69th anniversary of NRB.

Addressing attendees, Governor Adhikari highlighted positive developments in the external sector of the economy during the fiscal year 2080 BS, despite challenges such as low credit demand and economic slowdown. He noted the central bank's success in maintaining fiscal stability, strengthening the payment system, and managing high inflation.

Governor Adhikari expressed optimism that the inflation rate for consumer goods in the current fiscal year would remain within the moderate range of 6.5 percent. However, he cautioned against potential risks stemming from global conflicts, such as the Russia-Ukraine conflict and conflicts in the Middle East, as well as export bans imposed by certain countries on foodstuffs, which could lead to price fluctuations in essential commodities and fuel.

Highlighting positive indicators, Governor Adhikari mentioned encouraging growth in remittance inflows, sufficient liquidity in the market, and reduced interest rates fostering better economic activities. He also cited favorable weather conditions and timely supply of fertilizers contributing to satisfactory agricultural output in the current fiscal year.

Moreover, Governor Adhikari emphasized progress in the power sector, with the production of 600 megawatts of power anticipated in the current fiscal year, along with advancements in the tourism industry, which could bolster overall economic growth.

On the regulatory front, Governor Adhikari informed attendees about ongoing efforts to draft key laws and procedures for the management of monetary and fiscal sectors, including Lease Finance and Securitization. He underscored the vital role of NRB in the country's economic development and fiscal stability, emphasizing the central bank's effective management of the monetary sector.