KATHMANDU, Nov 29: The Nepal Rastra Bank (NRB) has published the first quarterly review of the monetary policy for the current fiscal year 2024/25.
The direction of the monetary policy announced in Shrawan (mid-July to mid-August) has been continued. The NRB has stated that this policy is expected to further support the expansion of economic activities while maintaining price stability and external sector stability.
Monetary policy review seeks to boost equity supply, housing, a...
"Based on the current state and outlook of the economy, the level of foreign exchange reserves, and an analysis of inflation, the flexible direction of the monetary policy for the fiscal year 2024/25 has been continued," the NRB stated in its monetary policy review. "By analyzing the state of inflation and foreign exchange reserves, we are managing liquidity in a way that supports economic growth using available resources."
Through the monetary policy review, the NRB has maintained the existing policy rate at five percent. Similarly, the deposit collection rate, which is the lower limit of the interest rate corridor, has been kept at three percent, and the bank rate, which is the upper limit of the interest rate corridor, has been maintained at 6.5 percent.
The NRB has pointed out that there has been no change in the required cash reserve ratio and statutory liquidity ratio. In the current situation, the NRB has concluded that there has been no change in the monetary tools and regulatory instruments, and has decided to continue with the same approach.
