Kathmandu. The National Bank has stated that it will manage liquidity so that the interest rate does not increase further. The Central Bank has made this arrangement public by making the first quarter review of the monetary policy of the current fiscal year public. Now, due to lack of liquidity, banks' interest rates are increasing. The central bank has said that it will provide sufficient liquidity to control it.

In the first quarter review of the monetary policy of the current fiscal year 2079/80 published by the Nepal Rastra Bank, it has been promised that the interest rates of banks and financial institutions will not increase further. Rashtra Bank spokesperson Dr. Gunakar Bhatt announced the monetary policy and said that liquidity will be provided to banks and financial institutions so that the interest rate does not increase further. According to Rashtra Bank, the average interest rate difference of commercial banks should be maintained from 4.4 percent to 4 percent.

Similarly, the average interest rate difference between development banks and finance companies will be maintained from 5 percent to 4.6 percent, according to the Rastra Bank. Rashtra Bank expects that the premium rate charged by banks and financial institutions while setting the loan interest rate will decrease and balance the loan interest rate as well.

According to the National Bank, the monetary instruments provided in the monetary policy 2079-80 have been continued. According to the National Bank, the mandatory cash ratio has been kept at 4 percent and the bank rate at 8.5 percent.