Nepal also has limited resources and, so far, the market mechanism has not been working to the full. Thus, it is preferable for the Nepalese government to complement the function of the market. 2  BIS Review 49/2003  There is, at the same time, concern over the worsening of inflationary pressures and the current account position in a rapid drive for development.
If such internal and external disequilibria are deepened, sustainable economic development is unlikely. Therefore, the central bank should devote intensive efforts to achieving price stability. From this point of view, it is of great importance to secure the central bank’s independence.