Nepal to introduce interest corridor in August
There will be an initial large ‘wedge’ between rates when first introduced, official says
Nepal's central bank will introduce an interest rate corridor in a "gradual manner", it has confirmed to Central Banking – with the process beginning in the middle of August.
"The objective of introducing an interest corridor is to guide the market interest rates to a desired path and control the high volatility" says Min Bahadur Shrestha, executive director at Nepal Rastra Bank's public debt management department.
The interest rate on the standing liquidity facility (SLF), a mechanism used to
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