Monetary Policy release for FY 2081/82, lowers bank rate & deposit collection rate (full text)
NRB Governor Maha Prasad Adhikari announced the monetary policy on Friday.
KATHMANDU: Nepal Rastra Bank (NRB) has released the monetary policy for the financial year 2081/2082.
NRB Governor Maha Prasad Adhikari announced the monetary policy on Friday.
Under the new monetary policy, the NRB has reduced the bank rate and the deposit collection rate.
Governor Maha Prasad Adhikari stated, “The upper limit of the bank rate in the interest rate corridor has been lowered from 7 percent to 5 percent, and the policy rate has been maintained at 5 percent.”
The provision of permanent liquidity facilities to maintain stability in the bank rate has been ensured, according to the NRB.
Similarly, existing arrangements regarding mandatory cash reserve ratios and legal liquidity ratios for banks and financial institutions have been maintained to ensure stability.
While making the monetary policy public, Governor Adhikari highlighted that the continuous monitoring of domestic and external conditions has been adopted to make the economy dynamic. He emphasized maintaining a flexible monetary policy direction.
Furthermore, he expressed confidence that improving the flow of credit towards productive sectors and enhancing the quality of loans would contribute to financial stability, translating into regulatory arrangements.
In the context of increasing accumulation of investable funds in banks with measures to make the country’s economy viable, the central bank has announced an industry-business-friendly monetary policy, including expansion of credit and dynamism of the construction sector, some flexibility in share mortgages and real estate loans.
