Inflation will surpass target in next fiscal year too

Central Bank governor Maha Prasad Adhikari today said that inflation will be higher than the target in the next fiscal year too.

Speaking at a discussion in the Finance Committee, under the House of Representatives, on the next fiscal year’s Monetary Policy, he said, that the central bank has set a target of taming the inflation under 6.5 per cent in the current fiscal year but the inflation is likely to go beyond the target due to the sharp rise in inflation in the international market. The war between Russia and Ukraine has pushed the global inflation rate up.

“Nepal should also pay attention to the monetary policies of most of the world's central banks to check the inflation,” he said, adding that it is difficult to tame inflation in the current fiscal year. Though, the central bank has claimed to crack whip on inflation, the inflation nears the double digit in the current fiscal year end also due to supply disruption created by the Russia and Ukraine in recent months.

The central bank governor also informed that Nepal should pay attention to the policy of raising the interest rate and scrap the concessions given during the Covid-19 pandemic to control inflation.