Kathmandu. Banks will not raise interest rates in June. Despite rumors of a rise in interest rates in the market recently, banks are discussing not to raise interest rates. According to the third quarterly review of the monetary policy released by the Nepal Rastra Bank last Friday, various bankers are of the opinion that there is no plan to increase the interest rate in June and there is no need to increase it.

Chief Executive Officer of Nepal Bank Krishna Bahadur Adhikari said that there is no possibility of increase in interest rates of banks in June. He further added that the issue of raising deposits by raising interest rates was not logical. Nepal Rastra Bank has directed the banks to maintain the CD ratio of 90 percent by mid-July. Accordingly, banks are now preparing to bring the CD ratio within 90 percent. However, banks are facing a challenge to maintain this limit within this period.

CEO Sharma said that looking at the current situation, it is a challenge for the banks to maintain the CD ratio limit of 90 percent. It is challenging to maintain the CD ratio at 90 percent by mid-July. Deposits are also coming out. Many banks are still above 90 percent.