Nepal Rastra Bank (NRB) has set the inflation rate of 7 per cent for the fiscal year (FY) 2022/023.

The NRB governor Maha Prasad Adhikari said so while unveiling the monetary policy for the FY 2022/23 on Friday. Governor Adhiakri says the NRB target to limit inflation to 7 per cent is lower than the actual inflation of the past FY 8.56% but higher than the target of the last year, 6.5%.

He said that the monetary policy targets to expand private sector credit by 12.6 per cent and the broad money supply by 12 per cent. It has increased the cash reserve ratio (CRR) to 4 per cent from 3 per cent in the previous fiscal year.

According to the monetary policy, the margin loan policy has been changed. Now, individual and institutional banks and financial institutions can provide margin loans up to Rs 120 million.