KATHMANDU: Commercial banks have reduced their base rates compared to the rates observed in the past three months.

According to the information released by the banks, the average base rate for the three months up to mid-July has decreased by 0.16 percentage points.

Notably, the base rate had already been lowered by 0.10 percent by May.

As a result of this decrease, it is expected that the interest rates on loans issued by the banks will also be reduced.

During the last three months, the average base rate of 16 commercial banks stood at 10.37 percent.

In a recent statement, the Nepal Rastra Bank has allowed banks and financial institutions to determine their own base rates for the upcoming months.