For the fiscal year 2024–2025, Nepal Rastra Bank (NRB) has released its monetary policy. With the new monetary policy, the NRB has reduced the bank rate and the deposit collecting rate.
The governor of the NRB, Maha Prasad Adhikari, announced the monetary policy at the same time. He stated that the policy rate has remained at five percent, down from five percent, and that the top limit of the interest rate corridor has been lowered from seven percent to six percent. The deposit collection rate, or the lower bound of the interest rate corridor, stays at three percent.
According to the NRB, the requirements for granting the Standing Liquidity Facility (SLF) would be made more flexible even though it will still be offered at the bank rate. Similarly, the current regulations pertaining to the required minimum cash reserve ratio (CRR) and statutory liquidity ratio (SLR) that banks and other financial institutions must uphold have been preserved.
NRB Governor Adhikari revealed the new monetary policy and stated that it is a flexible policy that has been carefully continued to make the economy dynamic by considering the external sector circumstances and stable prices. According to him, the regulatory framework has also been created to preserve financial stability while putting a focus on lending to the productive sector and raising credit quality.
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