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what is repo rate?
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Answer Posted / abhay kumar
Repo rate is the interest rate at which RBI lends money or
securities to other banks. Currently the RBI has increased
the reporate from 7.75% to 8%. the main reason for the hike
is to control the current inflation in our country, which
is now 8.24% and it is expecyed to cross 10%,by several
economist.
Repo rate is a rate on which rbi lend omney to the
commercial bank and take securities from there.
reverse repo rate is the rate at which rbi taking out money
from the bank and return the bank security to the bank it
is also decided by rbi itself.
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