Repo rate
Repo rate is a powerful arm of the Indian monetary policy that can regulate the countrys money supply inflation levels and liquidity. Higher the repo rate higher will be the cost of borrowing for banks and vice.
A Simple Diagram Of Relation Between Repo Rate And Inflation Niravisms Diagram Relatable Investing
How Does Repo Rate Affect the Economy.
. Additionally the levels of repo have a direct impact on the cost of borrowing for banks. The auction cut-offs of variable rate reverse repo are also coming near the repo rate in line with the central banks plan to move towards a policy rate regime where the rate difference between liquidity absorption and infusion is narrowed to just 25 basis. This has meant that the reverse repo rate of 335 per cent is no longer very relevant.
Makingthingssimple Reverse Repo Rate Is The Rate At Which The Central Bank Of A Country Reserve Bank Of India In C Borrow Money Commercial Bank Bank Lending
Everything You Should Know About Reverse Repo Rate In 2021 Reverse Bank Of India Bank
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