KATHMANDU: The Nepal Rastra Bank (NRB) on Sunday issued the Monetary Policy for the current fiscal year 2023/24, implementing significant adjustments to key interest rates in a bid to stimulate economic growth.

The policy rate has been lowered from 7 percent to 6.5 percent, aiming to provide a boost to the economy.

The reduction in the policy rate means that banks accessing short-term loans through the central bank will benefit from reduced costs.

Consequently, this move is expected to put pressure on banks to lower overall interest rates for borrowers, potentially making borrowing more affordable for businesses and individuals.

However, it’s worth noting that the bank rate limit remains unchanged at 7.5 percent.

The bank rate represents the rate at which the central bank lends money to banks for liquidity management purposes.

Furthermore, there has been a revision in the deposit collection rates, which have decreased from 5.5 percent to 4.5 percent.

This change may impact the interest rates that banks offer to their customers for deposits and savings accounts.