By Our Reporter The Nepal Rastra Bank has launched the Himalaya Shumsher Memorial Lecture series in recognition of his services to the NRB. Rana was the Governor of the central bank of Nepal from April 26, 1956 to February 7, 1961. In the first lecture series held on Tuesday, Governor of the Reserve Bank of India (RBI), Shaktikanta Das, suggested the central banks should take into account the broader growth prospects in their pursuit of price stability. "You must not sacrifice the growth prospects in the name of price stability. The trade-off must not disturb the dynamics of the economy," he said. Sometimes, the pursuit of price stability could be in conflict with financial stability as experienced recently by some advanced economies when tighter monetary policy raised concerns about the banking system stability, Das said. "The trade-off between price stability and growth emerges when the pursuit of price stability entails large growth sacrifice. It is, therefore, important, that central banks employ their multiple instruments, viz., monetary policy, macroprudential regulation and micro-prudential supervision in an optimal manner to reduce such trade-offs, and achieve better outcomes for the economy," said Das. Citing the recent experiences and practices of the central banks, Das said that the key lesson from it was the need to avoid looking at price and financial stability in isolation. Das said that excess liquidity will cause inflation and create other challenges in monetary management which was observed during the COVID-19 period. According to him, injection of liquidity should be targeted to certain sector and with a strict limitation of time. "If you allow the liquidity to remain in the market, you are allowing the emergence of new challenges in future," he said. He suggested the central banks adopt unconventional practices like negative interest rates and forward guidance to make the markets predictable. On the occasion, the Governor of the NRB, Maha Prasad Adhikari that the central banks of Nepal and India have partnered on bilateral and multilateral issues.