Kathmandu. Nepal Rastra Bank has reduced the bank rate. Rastra Bank has reduced the bank rate from 7.5 percent to 7 percent while reviewing the monetary policy of the current financial year. Similarly, the policy rate has been reduced from 6.5 percent to 5.5 percent and the deposit collection rate has been reduced from 4.5 percent to 3.0 percent. Mandatory cash ratio and statutory liquidity ratio have been maintained.

In view of the analysis of various aspects influencing the current inflation, the current situation and the growth rate of bank loans to the private sector, the bank rate has been reduced from 7.5 percent to 7 percent, the policy rate has been reduced from 6.5 percent to 5.5 percent and the deposit collection policy rate has been reduced from 4.5 percent. 3.0 percent has been maintained. Mandatory cash ratio and statutory liquidity ratio have been maintained.

Debenture issued by banks and financial institutions are allowed to count 100% as resources until December 2080, after that fifty percent of debentures will be counted as resources until June 2081. Nepal Rastra Bank Governor Mahaprasad Adhikari has said that the policy rate has been reduced to increase the demand for loans. Speaking at a press conference organized by Nepal Rastra Bank after the first quarter review of the monetary policy, the governor officer said that the policy rates have been reduced as the demand for loans has to be increased now.