Reduced interest rate
Even as banking collapses seem to be spreading from the US to Europe, Nepal Bankers Association has limited interest rates on loans effective this week. The move is aimed at protecting customers from high interest rates, and make taking loans more affordable. The premium rate on loans has been reduced to 5%, the interest rate on fixed deposits is at 11%, and 8% on ordinary saving accounts. Institutional and remittance accounts are set at 9% and 12% respectively. Interest rate of deposits less than one year will be 11.50%.
Nepal Rastra Bank has kept several rates unchanged to protect its tighter monetary policy including the cash reserve ratio which remains unchanged at 4% and statutory liquidity ratio remains at 12%.