Nepal, July 16 -- Nepal Rasta Bank (NRB) Governor Biswo Nath Poudel unveiled the Monetary Policy 2025-26 last week. The policy arrives at a time when Nepal is facing prolonged stagnation, shrinking investment and declining aggregate demand, coupled with a volatile global financial landscape. The central bank's policy, which is shaped by Poudel's vision, carries significant weight. Yet, it also raises critical questions about whether the necessary decisiveness and boldness will accompany its implementation.

The economic malaise Nepal faces is not simply a cyclical downturn but one riddled with deeper structural issues. The country's limited industrial diversification, infrastructure gaps and political instability have long constrained gro...