Kathmandu. Nepal Rastra Bank (NRB) has reduced the interest rate corridor upper limit and policy rate.

The central bank has released the first quarterly review of the monetary policy for the current fiscal year. Through this review, the upper limit of the interest rate corridor and the policy rate have been reduced.

The Nepal Rastra Bank (NRB) has reduced the permanent liquidity facility rate from 6 percent to 5.75 percent and the policy rate from 4.50 percent to 4.25 percent. The lower limit of the interest rate corridor has remained unchanged at 2.75 percent.

Through the review, the existing provision regarding mandatory cash reserve and legal liquidity ratio has been retained.