Kathmandu: The Nepal Rastra Bank (NRB) has released the first quarterly review of the monetary policy for the current fiscal year following its approval in a meeting of the NRB Board of Directors.

The review, aimed at analyzing factors influencing inflation, introduces adjustments in key monetary policy rates. The bank rates have been reduced from 7.5 percent to 7 percent, taking into account the current status of the Balance of Payment and the growth rate of bank loans to the private sector. Additionally, policy rates have been maintained at 5.5 percent, compared to the previous rate of 6.5 percent.

The mandatory cash reserve ratios and statutory liquidity ratios remain unchanged, ensuring stability in these provisions. A notable adjustment involves counting debentures issued by banks and financial institutions, which will now be considered 50 percent as a resource until the end of the current fiscal year, deviating from the earlier provision of 100 percent until December-January.

These changes are part of the NRB's efforts to adapt the monetary policy to the evolving economic conditions and promote financial stability.