Nepal Rastra Bank Tightens Interest Rate Corridor in Monetary Policy Review
Summary
Nepal Rastra Bank is narrowing the interest rate corridor in its monetary policy for fiscal year 2082/83 to reduce the gap between the upper and lower limits and keep the policy rate within the corridor.
Key Points
- Nepal Rastra Bank is narrowing the interest rate corridor in its monetary policy review for fiscal year 2082/83.
- The upper limit interest rate was adjusted to 5.75% and the policy rate to 4.25%.
- Liquidity absorption was conducted 71 times through deposit auctions, 117 times via standing deposit facility, and 9 times via NRB bonds in the fiscal year.
- Short-term interest rates remain close to the lower limit due to excess liquidity, leading to decreased deposit and loan interest rates.
