The End of Zero Percent Interest Rates: Impact on Nepal's Economy

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Remember when borrowing money felt... easy? For fifteen years, the world was at a party where the drinks were free, and the interest rates were zero. But look around. The lights just came on, the music stopped, and the bill just arrived.

We called it the era of 'Free Money.' But in 2026, we’re facing a cold new reality: Sticky Inflation. It’s not just a phase anymore—it’s the new baseline. Central banks have stopped waiting for things to 'go back to normal' because this is the new normal.

Meet the Neutral Rate. Think of it as the speed limit for the economy. For years, we were speeding at 0%. Now? The limit has been raised permanently. Money has a price again. And it’s not zero.

Why does this matter to you? Because that 'Free Money' party left a massive hangover. Your future mortgage? More expensive. Your business loan? Harder to get. Even your government is struggling to pay its own credit card bill. The weight of debt just got a lot heavier.

The era of easy money is buried. It’s time to stop waiting for rates to drop and start learning how to thrive in the high-rate era. Are you ready for the cleanup? Let’s talk about it in the comments. Follow Sara Pathshala for the survival guide.



Sara Pathshala was started in Nepal to help students master complex Economics and Banking concepts for TU exams and Lok Sewa.

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