Kathmandu Nepal Rastra Bank has kept the bank rate unchanged. Releasing the monetary policy for the fiscal year 2080-81, the National Bank has informed that the bank rate has been kept unchanged at 7.5 percent and the deposit collection rate has been reduced from 5.5 percent to 4.5 percent. Considering the internal and external economic scenario, the policy rate has been reduced by 50 basis points to 6.5 percent.

According to the National Bank, the provision of permanent liquidity facility at bank rate and overnight liquidity facility at policy rate has been maintained. If the weighted average interbank interest rate taken as the operational target is higher than the bank rate and lower than the deposit collection rate, the secondary market transactions and deposit collection will be opened.

The weighted average interest rate of interbank transactions of banks and financial institutions has been kept unchanged as the operating target. The monetary policy aims to keep the interbank interest rate within the interest rate corridor by actively conducting open market transactions based on the status of operational targets. Similarly, it aims to manage the monetary system so as not to put pressure on the prices due to the monetary expansion to maintain the inflation rate within 6.5 percent.