Kathmandu. Commercial banks have started reducing interest rates. The bank’s interest rate on fixed deposits decreased by 0.204 percent on an average in July compared to June.

The bank’s average interest rate on fixed deposits was 5.902 per cent in June. It has come down to 5.697 percent in July. Of the 20 commercial banks in operation, 14 banks have reduced the interest rate on fixed deposits.

According to the interest rates published by the banks, the interest rates of four banks have remained stable and the interest rates of two banks have increased.

Standard Chartered Bank and Himalayan Bank have increased the interest rate. Similarly, Machhapuchhre Bank, Global IME Bank, Siddhartha Bank and NMB Bank have kept interest rates stable.

Machhapuchhre Bank, Global IME Bank and NMB Bank have 6 per cent interest rates each while Siddhartha Bank has 5.75 per cent. Prabhu Bank has reduced the highest interest rate by 1.85 percentage points. The interest rate on personal fixed deposits will be up to 4.25 per cent in July as against a maximum of 6.1 per cent in July. The new interest rate will come into effect from July 1.