NRB unveils Monetary Policy for FY 2024/25

KATHMANDU: Nepal Rastra Bank (NRB) has unveiled its monetary policy for the fiscal year 2024/25 today. 

In the new monetary policy, the NRB has made adjustments to both the bank rate and the deposit collection rate.

Making public the monetary policy, NRB Governor Maha Prasad Adhikari stated that the upper limit of the interest rate corridor’s bank rate has been reduced from 7% to 6.5%. Additionally, the policy rate has been lowered from 5.5% to 5%. However, the deposit collection rate — set at 3% and representing the lower limit of the interest rate corridor — remains unchanged.

Continuing its commitment to providing liquidity support, the central bank said it will maintain the provision of a permanent liquidity facility at the bank rate. Moreover, the conditions for accessing this liquidity will be made more flexible. The existing requirements related to the mandatory cash ratio and statutory liquidity ratio for banks and financial institutions (BFIs) will also persist.

Governor Adhikari stressed that the flexible monetary approach aims to invigorate the economy, taking into account the prevailing context of stable prices and external factors. Simultaneously, NRB’s regulatory framework prioritises financial stability, encouraging lending to the productive sector and enhancing credit quality.