What Is the Repo Rate
The repo rate is the interest rate at which a central bank lends money to commercial banks. It is a key policy tool used to manage inflation, liquidity, and economic growth.
When Is the Repo Rate Set
Central banks typically set the repo rate during scheduled monetary policy meetings. For example, the Reserve Bank of India announces its repo rate decisions after bi-monthly Monetary Policy Committee meetings.
How the Repo Rate Affects Markets
Changes in the repo rate influence bank lending rates, bond yields, and currency movements. A higher repo rate generally tightens credit conditions, while a lower rate aims to stimulate borrowing and investment.
For official announcements and statements, visit the Reserve Bank of India.
