Commercial banks in Nepal have lowered their base interest rates to record lows, with the average rate falling to about 5.36% in mid January due to excess liquidity and weak demand for loans. Some banks now have base rates below 5%, making lending cheaper, with home and auto loan rates dropping below 6% a year. Bank officials say the slowdown in the economy has reduced borrowing, even though banks are flush with deposits. As a result, lending has not grown much despite lower interest rates.
Base Interest Rate of Commercial Banks Plummets to a Three Year Low at 5.36%
