Repo Rate

Repo rate is the rate at which the Reserve Bank of India lends money to commercial banks in the event of any shortfall of funds. Repo rate is used by monetary authorities to control inflation.

Reduction in Repo rate helps the commercial banks to borrow at a cheaper rate and increase in Repo rate discourages the commercial banks to borrow as the rate increases and becomes expensive.

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Updated: December 19, 2017 — 8:35 am

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