NRB makes public Monetary Policy 2023/24 (Full text)

KATHMANDU: The Nepal Rastra Bank on Sunday made public the monetary policy for the fiscal year 2023/24.

The central bank has implemented a new policy by reducing the policy rate by 50 basis points to 6.5 percent. However, the mandatory cash ratio and statutory liquidity ratio for banks and financial institutions remain unchanged. The bank rate remains steady at 7.5 percent, while the bidding rate for deposit collection has been lowered to 4.5 percent from 5.5 percent.

In order to ensure the effectiveness of the interest rate corridor, the secondary market transaction and bidding in deposit collection will remain open if the weighted interbank interest rate falls between the bank rate and the deposit collection rate. The provision of permanent liquidity facility at the bank rate and overnight liquidity facility at the policy rate will remain unchanged.

Additionally, the central bank will provide permanent deposit collection at the lower limit of the interest rate corridor to support the effectiveness of this approach. These measures have been taken considering the current internal and external economic conditions.

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