Nepal Rastra Bank Cuts Interest Rates to Boost Economic Growth
The central bank reduces the policy rate by 50 basis points to stimulate lending and investment.
.jpg&w=3840&q=75)
Nepal Rastra Bank announced a 50 basis point reduction in the policy rate, bringing it down to 5.0 percent. The decision aims to stimulate economic growth by making borrowing cheaper for businesses and consumers.
The central bank cited slowing economic growth and declining inflation as key factors behind the decision. GDP growth for the current fiscal year is projected at 4.2 percent, below the government's target of 6 percent.
Banking sector representatives welcomed the move, expecting it to revive stagnant credit demand. Real estate and construction sectors are expected to benefit the most from lower borrowing costs.
However, some economists warned that rate cuts alone cannot solve structural issues in the economy and called for comprehensive reforms in taxation, trade policy, and public investment efficiency.
Liked the Story?
Share it with your friends and community
.jpg&w=48&q=75){kind=small}