KATHMANDU, July 23: On Sunday, Nepal Rastra Bank (NRB) unveiled the monetary policy for the current financial year 2023/24, making significant adjustments to key interest rates. The policy rate has been reduced from 7 percent to 6.5 percent, a move aimed at stimulating economic growth.
With the policy rate decrease, banks accessing short-term loans through the central bank will benefit from reduced costs. This, in turn, is expected to exert pressure on banks to lower overall interest rates for borrowers.
Revised interest rate corridor system introduced
However, the bank rate limit remains unchanged at 7.5 percent. The bank rate is the rate at which the central bank lends money to banks for liquidity management purposes.
Additionally, deposit collection rates have seen a revision, dropping from 5.5 percent to 4.5 percent.
