KATHMANDU, July 23: Nepal Rastra Bank (NRB) has reduced the policy rate keeping the bank rate unchanged at 7.5 percent. While unveiling the monetary policy for the fiscal year 2023/24, the NRB announced that the policy rate has been reduced by to 6.5 percent in view of the internal and external economic scenario. Similarly, the deposit collection rate has been reduced from 5.5 percent to 4.5 percent, according to the NRB.
If the weighted average interbank interest rate taken as the operational target is higher than the bank rate and lower than the deposit collection rate, the secondary market transactions and deposit collection will be opened.
Revised interest rate corridor system introduced
According to the NRB, the provision of permanent liquidity facility at the bank rate and overnight liquidity facility at the policy rate has been maintained.
In order to make the interest rate corridor effective, arrangements will be made to provide a permanent deposit collection facility at the lower limit of the interest rate corridor. The Cash Reserve Ratio and Statutory Liquidity Ratio have been kept unchanged.
