The Nepal Rastra Bank has taken a more accommodative approach in its first quarterly monetary policy review for FY 2025/26, reducing the interest rate corridor. The standing liquidity facility (SLF) rate has been lowered from 6.00 to 5.75 percent, while the policy rate has dropped from 4.50 to 4.25 percent. The central bank has also removed the rule requiring institutional fixed deposit rates to be at least one percentage point lower than individual fixed deposit rates.
