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Nepal to introduce interest corridor in August

There will be an initial large ‘wedge’ between rates when first introduced, official says

Nepal Rastra Bank
Nepal Rastra Bank depicted on a stamp: central bank to ease in interest rate corridor

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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