Kathmandu. The central bank has hinted that it may use interest rates to ease external pressures, even if it continues to pursue policy measures. In its third quarterly review of the monetary policy for the current fiscal year, Nepal Rastra Bank has stated that the existing mandatory cash ratio, statutory liquidity ratio, bank rate and refinancing rates have been kept unchanged in line with the monetary policy guidelines.

However, NRB seems to have indicated that it will use interest rates as well as other selective instruments to maintain macroeconomic stability by reducing the existing pressure in the internal and external sectors. NRB has stated that the policy direction of monetary policy will be tightened if there is pressure on inflation and import capacity of foreign exchange reserves.