Nepal Rastra Bank Signals Key Policy Rate Reductions Ahead of Q1 Monetary Review: Reviewing Caps on Margin Lending and Real Estate Investments While Deploying Long-Term Liquidity Absorption Tools

With commercial banking liquidity reserves soaring past NPR 650 billion and CD ratios sliding below 78.5%, Nepal Rastra Bank has indicated plans in its upcoming First Quarter Monetary Policy Review to cut key policy interest rates, rationalize risk weights on margin lending, and ease construction mortgage regulations.