May 12: Nepal Rastra Bank (NRB) has reduced the bank rate by one percentage point to 7.5 percent. The central bank on Friday released the third quarterly review of the monetary policy for the fiscal year 2022/23 and reduced the bank rate.

Along with this, it is estimated that the interest rate on loans and deposits may likely decrease. Bank rate affects the interest rate of loans and deposits. If the bank rate increases, the interest rate will increase and if it decreases, the interest rate will decrease.

The central bank said that the policy rate has been kept unchanged at 7 percent. Similarly, the NRB has kept the other rates under the interest rate corridor unchanged.

According to the central bank, the policy rate has been kept unchanged considering the prospects of the foreign exchange reserve to support imports as well as the policy rate of neighboring country and the difference between the inflation rates between the two countries.