Kathmandu. Mahaprasad Adhikari, Governor of Nepal Rastra Bank, said that economic activity is increasing when the interest rates of banks are decreasing. Addressing the main ceremony held on the occasion of the 68th anniversary of Rashtra Bank, the governor officer said this. The governor officer said that when the bank reduced the interest rate, the internal activity increased and the pressure on the economy gradually decreased.

He said that since Nepali banking sector is getting stronger, it is necessary to maintain financial stability. He said that internal activities will increase as liquidity management has become easier recently. In addition to this, research transfer and foreign exchange are also improving, he said.

According to the Governor's official, the liquidity position of the banking system has also improved due to the continuous improvement in the foreign exchange reserves and foreign exchange reserves in recent months. He said, "The pressure on the interest rate has started to decrease.

After strengthening the liquidity management and providing the overnight liquidity facility at the policy rate, the interbank rate has decreased from 8.5 percent to 7 percent. Banks and financial institutions have also started reducing interest rates on deposits and loans.