Kathmandu, July 28: Nepal Rastra Bank (NRB), the central bank of Nepal, has reduced the interest rate corridor by 1 percentage point to 4.5 percent.
NRB today amended the Integrated Directive, 2079 and reduced the deposit collection rate, and the repo rate has also decreased by 0.50 percentage points.
Previously, the permanent liquidity facility rate as the upper limit of the interest rate corridor in commercial banks was 7.5%, the deposit collection rate as the lower limit was 5.5% and the repo rate as the policy rate was 7 percent.
The permanent liquidity facility rate has been kept unchanged at 7.5%. But the deposit collection rate, which is the lower limit, has been raised to 4.5%. Likewise, the repo rate, which is the policy rate, has been maintained at 6.5%.
NRB has decided to reduce the deposit collection rate and the policy rate as announced in the monetary policy of the current fiscal year 2080/81 BS.
