Kathmandu, May 12: Nepal Rastra Bank (NRB) has reduced the bank rate by 1 percentage point. The central bank made it for Fiscal Year 2022/23.
The Bank has kept the policy rate, but has reduced the existing bank rate by 1 percentage point to 7.5 percent. The rest of the rates under the interest rate are as they are. The inter-bank interest rate has decreased by 1.5 percentage points as NRB has made provision for providing the daily liquidity facility which it has been making available at 8.5 percent. NRB has given continuity of the existing arrangement till 14 January 2024.
The Central Bank has also made some new provisions in connection with the refinancing. The refinance will be provided to the sectors whose growth rate is in the negative over the last 6 months.
The loan issued to hotel and restaurant, livestock farming, loan related to the construction sector and loans of up to Rs. 50 million issued to other sectors would be restructured within 16 July 2023.