Nepal Rastra Bank Cuts Policy Rate to 4.25% in Mid-Year Review
- Event Title
- Nepal Rastra Bank Cuts Policy Rate to 4.25% in Mid-Year Review
- Details
Overview
In its mid-year review of the Monetary Policy for FY 2025/26, Nepal Rastra Bank (NRB) reduced its key policy rate by 75 basis points to
$4.25\%$(down from$5.0\%$). This accommodative stance aims to boost private sector credit growth and stimulate sluggish economic activity.Key Measures
- Policy Rate: Reduced to
$4.25\%$to lower the cost of capital. - Interest Rate Corridor: Adjusted to strengthen monetary transmission and manage liquidity in the banking system.
- Objective: Target economic revival by facilitating credit flow to productive sectors amid low domestic demand.
- Policy Rate: Reduced to
- Date
- 2026-01-15
- Category
- Economy
- CMAT Significance
- High CMAT priority — current policy rate (`$4.25\%$`), NRB's accommodative stance, and rate corridor adjustments are standard monetary policy exam questions.