Steep rise in short-term interest rates as inter-bank rate reaches 8.5 % & treasury bills rate 14 %

A businessman, standing while holding a briefcase, looks up at a chart on a wall that indicates interest rates are rising.

KATHMANDU: Banks are facing extreme liquidity shortage and crisis after the monetary policy released by Nepal Rastra Bank (NRB).

After the central Bank decided to increase the interest rate to control the price increase, its effect has started to be seen. The rate of treasury bills has reached 14 percent.

According to the data released by the central bank on Tuesday, the inter-bank interest rate has reached 8.45 percent. While it was running around 7 percent before the monetary policy released.

Bank deposits are also decreasing in recent days. Deposits on Sunday decreased by seven billion compared to Friday. Only commercial banks have decreased by 6 billion rupees.

Fiscal Nepal |
Tuesday July 26, 2022, 12:35:18 PM |

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