Central bank issues new directive on interest rates

Nepal Rastra Bank adjusts interest rates for fixed deposits

KATHMANDU: The Nepal Rastra Bank has unveiled the mid-year review of the monetary policy for the ongoing financial year, outlining new measures to regulate interest rates on fixed deposits. As per the review, the central bank has introduced fresh arrangements to govern the interest rates on fixed deposits and establish an interest rate corridor. Effective mid-February, the fixed deposit facility will be implemented with a key adjustment concerning institutional fixed deposit interest rates. In accordance with the policy, the interest rate for institutional fixed deposits will be set one percentage point lower than the rate offered for...

Ratopati English माघ २०८०

Nepal Rastra Bank adjusts interest rates for fixed deposits

KATHMANDU: The Nepal Rastra Bank has unveiled the mid-year review of the monetary policy for the ongoing financial year, outlining new measures to regulate interest rates on fixed deposits. As per the review, the central bank has introduced fresh arrangements to govern the interest rates on fixed deposits and establish an interest rate corridor. Effective mid-February, the fixed deposit facility will be implemented with a key adjustment concerning institutional fixed deposit interest rates. In accordance with the policy, the interest rate for institutional fixed deposits will be set one percentage point lower than the rate offered for...

Ratopati English माघ २०८०

UML Chair Oli advocates for mutual consent in bank interest rate increase

KATHMANDU: CPN (UML) Chair KP Sharma Oli emphasized the necessity of requiring mutual consent for increasing bank interest rates. Speaking at the 7th National Convention of the Nepal Bank, Insurance, and Financial Institutions Employees’ Association at the UML Central Office in Chyasal, Lalitpur, Oli proposed regulations preventing unilateral changes in bank interest rates. Oli accused […]

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ECB raises key rates by 25 bps

FRANKFURT, June 16: The European Central Bank (ECB) on Thursday announced a new interest rate increase of 25 basis points (bps), continuing its rate-hiking spree aimed at curbing inflation. The interest rates on the main refinancing operations, the marginal lending facility, and

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New Zealand: Economy slips into recession after interest rate hikes

June 15: New Zealand's economy has fallen into a recession after the country's central bank aggressively raised interest rates to a 14-year high. Its gross domestic product (GDP) fell by 0.1% in the first three months of the year, official figures show.

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Market determines interest rate: NRB

The Nepal Rastra Bank (NRB) said that the bank interest rates are not controlled by the central bank but are determined by the market. The central bank has left the

The Rising Nepal फाल्गुन २०७९

Bank interest rates to lessen starting 15th of March

KATHMANDU, March 9: The interest rate of bank loans will be decreased by 1 percent starting March 15, 2023. The meeting of the Nepal Bankers Association (NBA), an organization of Chief Executive Officers (CEOs) of commercial banks decided to implement a decrease in interest rates.

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Shares fall in Asia and US as interest rates rise

Stock markets in Asia and America have tumbled after the US central bank this week announced the biggest interest rate rise in 22 years.

The Rising Nepal चैत्र २०७८

India central bank hikes interest rates after two years

MAY 5: The Reserve Bank of India (RBI) raised the repo rate - at which it lends money to commercial banks - by 40 basis points to 4.4%. The rate had been reduced to a record low of 4% during the Covid-19 pandemic. RBI governor Shaktikanta Das made the surprise announcement during an online media briefing on Wednesday. The RBI also announced a 50 basis point increase in the cash reserve ratio - the percentage of cash that banks need to keep in reserve against their total deposits - to suck out excess liquidity from the system. The decision came amid soaring prices of food and fuel, with inflation at an 18-month high and higher global prices filtering through into India. "Inflation-sensitive items relevant to India such as edible oils are facing shortages due to the conflict in Europe and export bans by key producers. The jump in fertiliser prices and other input costs has a direct impact on food prices in India," Mr Das said. RBI believes this, coupled with lockdowns in major production hubs such as China, is likely to "accentuate global supply chain bottlenecks while depressing growth", and pose further upside risks to India's inflation trajectory. He added that food inflation is expected to remain high as "spillovers from global wheat shortages are impacting domestic prices, even though domestic supply remains comfortable". But despite lingering global headwinds and intensifying geopolitical headwinds, RBI believes domestic growth will be supported by a broad rebound in economic activity, the forecast of a normal monsoon and a revival in the investment cycle and exports. According to economists, the RBI's decision, which came ahead of the US Federal Reserve's meeting later on Wednesday, was slow to come, given inflation is at its highest levels in several decades in many developed economies. They also forecast more rate hikes in the year ahead. "We do foresee an additional 35-60 bps of rate hikes in the remainder of H1 FY2023," said Aditi Nayar, Chief Economist, ICRA Limited, in a press statement. According to the real estate consultancy, the hike signals "an imminent end to the all-time low interest regime, which has been one of the major drivers behind home sales across the country since the pandemic began," and will dampen housing demand to some extent. It will also raise the borrowing costs of companies, which have already begun passing these on to consumers. According to industry bodies, this will end up hurting consumer and business sentiments at a time when the economy is still recovering from the pandemic. "Any increase in the interest rate will further impact the cost of doing business, which is already high viz-z-viz high raw material cost," said Pradeep Multani, president, PHD Chamber of Commerce and Industry. Indian households have been struggling to stretch their budgets over the past few months as prices of daily household items such as cooking oil and lemons soar. Economists point to a number of reasons - from higher transportation costs to supply side bottlenecks, and a weakness in the jobs market that suppresses disposable incomes. After the rate hike announcement, the Indian markets closed the day in the red with a 1,300 point loss on the benchmark 50-share Sensex.

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With the increase in interest rate deposit doubles to credit in bank - Khabarhub

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