Kathmandu: Nepal Rastra Bank (NRB) has announced its Monetary Policy for the fiscal year 2024/2025, implementing key adjustments to its financial regulations. The central bank has reduced the bank rate and deposit collection rate as part of its new policy measures.

Governor Maha Prasad Adhikari revealed that the upper limit of the interest rate corridor has been lowered to 6.5 percent from the previous 7 percent, while the policy rate remains at 5 percent, down from 5.5 percent. The lower limit of the corridor, representing the deposit collection rate, remains unchanged at 3 percent.

In addition, the NRB will continue offering the Standing Liquidity Facility (SLF) at the bank rate, with a more flexible set of conditions for its provision. The existing requirements for the mandatory cash reserve ratio (CRR) and statutory liquidity ratio (SLR) for banks and financial institutions will remain in place.

Governor Adhikari emphasized that the new policy is designed to foster economic dynamism by balancing stable prices with external sector conditions. The regulatory framework aims to ensure financial stability while promoting lending to productive sectors and enhancing credit quality.