Live macroeconomic indicators from Nepal Rastra Bank — prices, interest rates, monetary aggregates, trade, remittances, forex reserves, and government finance.
Nepal's inflation is measured by the Consumer Price Index (CPI), published monthly by the National Statistics Office (NSO). Nepal's CPI tracks price changes in food & beverage, non-food & services, and energy categories. Inflation is heavily influenced by import prices (Nepal imports most fuel and manufactured goods), the Indian Rupee exchange rate (NPR is pegged to INR at 1.6:1), and seasonal food prices. Lagani Pro's Economic Analysis tracks the latest CPI data from NRB.
Nepal Rastra Bank (NRB) sets three key policy rates: the Bank Rate (ceiling for interbank lending), the Repo Rate (rate at which NRB lends to banks short-term), and the Reverse Repo Rate (rate NRB pays banks for overnight deposits). When NRB raises rates, borrowing costs increase — this typically slows credit growth, reduces corporate earnings, and can weigh on NEPSE stock prices. Rate cuts tend to stimulate the economy and boost equity markets. NRB announces monetary policy twice a year.
Nepal's trade deficit is the gap between its imports and exports. Nepal imports significantly more than it exports — major imports include petroleum products, gold, vehicles, machinery, and agricultural goods. Exports are limited to carpets, pashmina, tea, and handicrafts. The deficit is largely financed by remittance inflows. A widening trade deficit can pressure the Nepali Rupee and forex reserves. Lagani Pro tracks Nepal's trade balance data from NRB.
Higher NRB policy rates typically hurt NEPSE in two ways: (1) banks raise lending rates, increasing the cost of capital for listed companies, which compresses corporate profits; (2) higher fixed deposit (FD) rates attract investors away from stocks into safer bank deposits, reducing demand for equities. Conversely, rate cuts tend to push investors toward stocks seeking better returns. Nepal's banking-heavy NEPSE index is particularly sensitive to NRB rate changes.
Nepal's forex reserves are foreign currency assets held by Nepal Rastra Bank, primarily in USD, EUR, GBP, and Indian Rupees, plus gold holdings. Reserves are measured in terms of months of import coverage — Nepal targets at least 7 months of imports. Strong reserves signal macroeconomic stability; low reserves can trigger currency pressure. Remittance inflows are the primary source of Nepal's forex reserves. Lagani Pro tracks NRB-published reserve data.
M2 is a broad measure of money supply that includes cash in circulation (M0), demand deposits (M1), and savings/time deposits. In Nepal, rapid M2 growth (typically above 15–20% year-on-year) has historically been associated with rising inflation and NEPSE bull markets, as excess liquidity flows into equities. NRB monitors M2 growth as part of its monetary policy framework. Lagani Pro's Monetary tab tracks Nepal's M2 and credit data.
Remittances — money sent home by Nepali workers abroad — account for over 25% of Nepal's GDP, making Nepal one of the world's most remittance-dependent economies. Remittances support household consumption, fund real estate purchases, and add to bank deposits, which in turn increases liquidity available for NEPSE investments. A slowdown in remittances (from global recessions or Gulf policy changes) typically reduces consumer spending and liquidity in Nepal's financial system.
Nepal's fiscal deficit is the difference between government expenditure and revenue. The government funds the deficit through domestic borrowing (treasury bills, development bonds) and foreign aid/loans. Large fiscal deficits can crowd out private sector borrowing and contribute to inflationary pressure. Development budget underspending is a persistent issue in Nepal — actual capital expenditure is typically much lower than budgeted. Lagani Pro's Fiscal tab tracks government revenue, expenditure, and deficit data.
The Nepali Rupee (NPR) is pegged to the Indian Rupee (INR) at a fixed rate of NPR 1.60 = INR 1.00. This peg has been in place since 1993. It means Nepal's monetary policy is heavily constrained by India's — when the RBI (Reserve Bank of India) raises rates, NRB must follow to maintain the peg and prevent capital outflows. The peg provides exchange rate stability for Nepal's trade-dependent economy but limits independent monetary policy.
Key macro indicators for NEPSE investors: (1) NRB policy rates — drive credit and market liquidity; (2) CPI inflation — high inflation leads to rate hikes that pressure stocks; (3) credit to private sector — proxy for corporate borrowing and economic activity; (4) forex reserves — signal macroeconomic health; (5) remittance growth — primary driver of household wealth and bank deposits; (6) M2 money supply — excess liquidity historically correlates with NEPSE bull runs. All tracked on Lagani Pro's Economic Analysis page.