Kathmandu. Nepal Rastra Bank (NRB) has retained some of the provisions in the monetary policy for the current fiscal year through the review of the third quarter.
The central bank has kept the upper limit of the interest rate corridor and the ratio of the required cash reserves and statutory liquidity intact.
Through the review, the policy rate has been kept unchanged at 5.0 percent, the deposit collection rate as the lower limit at 3.0 percent and the bank rate as the upper limit under the interest rate corridor at 6.5 percent.
Similarly, the ratio of existing mandatory cash reserves to statutory liquidity has been kept unchanged. In view of the existing liquidity situation of the financial system and the recent improvement in the open market transaction instruments of the bank, banks and financial institutions will have to maintain a minimum mandatory cash reserve of 90 percent per day.
