Policy rate reduced to 4.5 pc for upcoming FY

By TRN Online, Kathmandu, July 11: The Nepal Rastra Bank (NRB) has reduced the policy rate to 4.5 per cent for the fiscal year (FY) 2025/26 from 5 per cent of the FY 2024/25. 

Unveiling its Monetary Policy for the FY 2025/26, the NRB announced today a new policy rate of 4.5 per cent for next FY from existing 5 per cent. Policy rate is interest rate of the loan provided by NRB to the banks and financial institutions for short term.

In addition, it has reduced the bank rate which is upper limit of interest rate corridor (IRC) to 6 per cent for upcoming FY from the previous (FY) rate of 6.5 per cent. Similarly, the deposit rate which is lower limit of IRC is reduced to 2.75 per cent for the upcoming FY from 3 per cent of the current FY. 

Meanwhile, statutory liquidity ratio (SLR) and cash reserve ratio  (CRR) will not be changed. 

Similarly, bank rate which is benchmark for providing standing liquidity facility (SLF) will not be changed.