Repo Rate is an important tool utilized by central banks such as the Reserve Bank of India (RBI), to control and manage the frequency of funds and financial status in the economy of the nation. The repo rate is also referred to as the repurchase rate . Learn the meaning of repo rate , who decides it, and its impact of loans, EMIs, and the Indian economy. The repo rate is one of the most important terms in banking and finance, often making... The repo rate, or repurchase rate, is the rate at which central banks lend to commercial banks , usually against government securities. It is an essential monetary policy tool, affecting the money supply and overall economic activity. The repo rate is the interest rate at which the RBI lends money to commercial banks , typically against collateral like government securities. It’s a vital monetary policy tool used to manage liquidity, credit and inflation in the economy. The term 'repo' stands for Repurchase Agreement.
