Nepal Rastra Bank (NRB) has published the monetary policy for the fiscal year 2075/76 (2018/19). To facilitate the GDP growth rate of 8% the central bank has adopted expansionary monetary policy.
Key highlights of monetary policy 2075/76 (2018/19):
- Cash Reserve Ratio (CRR) and Statutory Liquidity Fund (SLF) have been fixed to 4% and 10% respectively.
- Inflation level for the coming fiscal year 2075/76 has been targeted to 6.5%.
- Interest rate corridor has following features:
|Particular||Rate (in %)|
|Standing Liquidity Facility (Ceiling rate)||6.5%|
|Repo (policy rate)||5%|
|Term Deposit (floor rate)||3.5%|
- Priority sector lending for ‘A’ class commercial banks has been fixed to 25%.
- The amount of margin lending has been decreased from 40% of core capital to 20%.
- All commercial banks need to perform credit rating from national or international credit rating agency.