BoP deficit jumps to Rs 12.57b

KATHMANDU, April 4: Although trade deficit declined, balance of payment (BoP) deficit widened by more than Rs 8 billion over a month and jumped to Rs 12.57 billion in mid-February 2011, shows a report of Nepal Rastra Bank (NRB).



The central bank, which released a report on macro-economic situation for the first seven months of 2010/11, attributed increased imbalances in financial accounts to the fresh jittery. [break]



The report boasts over moderation of inflation, which went down to 10.2 percent in mid-February compared to 11.3 percent a month ago. However, the figure is still much higher than the target set for the year.



NRB had initially promised to contain inflation at 7 percent, but during a recent review of monetary policy, it had jacked up its inflation target to 9 percent. (more on page 8)

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