The Nepal Rastra Bank (NRB) has published the monetary policy for the
ongoing fiscal year 2080-81 (2023-2024).The central bank issued the policy
after approving it at the board of directors meeting held in the morning.
Monetary policy refers to the steps taken by a country's central bank to
control the money supply for economic stability.Monetary policy strategies
include revising interest rates and changing bank reserve requirements.
On
Sunday, Nepal Rastra Bank (NRB) unveiled the monetary policy for the current
financial year 2023/24, making significant adjustments to key interest rates.
The policy rate has been reduced from 7 percent to 6.5 percent, a move aimed
at stimulating economic growth.With the policy rate decrease, banks accessing
short-term loans through the central bank will benefit from reduced costs.
This, in turn, is expected to exert pressure on banks to lower overall
interest rates for borrowers.However, the bank rate limit remains unchanged at
7.5 percent. The bank rate is the rate at which the central bank lends money
to banks for liquidity management purposes.Additionally, deposit collection
rates have seen a revision, dropping from 5.5 percent to 4.5 percent.
Under
the new monetary policy, Nepalis going overseas will now have the option to
withdraw up to 2500 US dollars.Previously, passport facilities were provided
to Nepali citizens visiting countries other than India twice a year, with a
limit of 1,500 US dollars. However, the new monetary policy has raised this
withdrawal limit to 2500 US dollars, providing travelers with increased access
to foreign currency.
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