Kathmandu. Nepal Rastra Bank announced the monetary policy for the financial year 2079/080 and raised the bank rate to 8.5. Mahaprasad Adhikari, Governor of Nepal Rastra Bank, has made this arrangement. Now the interest rate will increase.

Keeping in view the pressure on prices and foreign exchange reserves, the rates under the interest rate corridor have been increased by 1.5 percentage points for macroeconomic stability and the bank rate has been maintained at 8.5 percent, the policy rate at 7.0 percent and the deposit collection rate at 5.5 percent.

The mandatory cash ratio to be maintained by banks and financial institutions will be increased by 1 percentage point to 4 percent with effect from August 1, 2079. By the end of December 2079, the statutory liquidity ratio to be maintained by banks and financial institutions will be increased to 12 percent for commercial banks and 10 percent for development banks and finance companies.