May 12: Commercial banks have agreed not to raise the interest rate till mid-June. However, the final decision will be made during a meeting of Nepal Bankers Association to be held later on Thursday.
Anil Sharma, CEO of the association, informed that the member banks have been suggested not to raise the interest rate till mid-June. A CEO of a commercial bank said that as per the suggestion, a majority of banks have agreed not to raise the interest rate.
At present, the interest rate of banks for fixed deposits of more than three months is 11.03 percent. There was a rumor in the market that the interest rates of the banks will be increased. After the A class commercial banks did not revise the interest rates, B class development banks and C class finance companies also did not revise the interest rates. Although the banks started to increase the interest rates lately to attract deposits, the deposits did not grow as expected.
There is a provision that the banks and financial institutions are allowed to revise the interest rates up to 10 percent every month.