Nepal, Sept. 16 -- Commercial banks of Nepal have reduced interest rate on deposits by an average of 0.04 percentage points for the next one month starting Thursday.

According to the interest rate schedules published by the commercial banks, the average interest rate for individual fixed deposits of the commercial banks stands at 4.08 percent for the one month period between mid-September and mid-October. The figure was 4.13 percent last month, while it was 4.16 percent in the previous month.

The average interest rate of banks has been in a downward trend for the past few years, owing to the excessive liquidity with the banks. A drop in deposit interest rates lowers the base rate, thereby exerting downward pressure on lending interest ...