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Repo Rate - also called Bank rate is the rate at which central banks lend loans to the member banks of a country. This rate actually impacts the rate at which these member banks grant loans to their customers
So, if RBI increases the Repo Rate in India, all the loans would get costlier in India i.e., their rate of interest will go up
What else can I help you with?
How does increase in repo rate effects interest rates?
Repo rate is the rate at which banks borrow money from the central bank of that country. So if the central bank (say reserve bank of india) hikes its repo rate, it becomes costly for banks to borrow money from RBI so they in turn hike the loan interest rates at which customers borrow money from them to compensate for the hike in repo rate.
How does the central banks control the interest rate?
Central banks control interest rates by altering the repo rate. Repo rate is the rate at which banks borrow money from the central bank. So if the central bank hikes the repo rate, the banks will automatically hike their lending rates. similarly if the central bank reduces the repo rate, banks will lower their lending rates too.
How does the central banks control the interest rates?
Central banks control interest rates by altering the repo rate. Repo rate is the rate at which banks borrow money from the central bank. So if the central bank hikes the repo rate, the banks will automatically hike their lending rates. similarly if the central bank reduces the repo rate, banks will lower their lending rates too.
What is the repo rate and reverse repo rate from aug 2011?
repo rate is 8%. reverse repo rate is 7%
What is the present repo rate and reverse repo rate of RBI?
Repo rate is 7.25 reverse Repo is 6.25
What is the current repo rate and reverse repo rate in india?
The current Repo Rate is 6.5% and that of Reverse Repo Rate is 5.5%. While the Bank Rate is 6.00% ..
What is reserve repo rate?
what is reserve repo rate
What is repo rate by RBI of India?
Whenever the banks have any shortage of funds they can borrow it from RBI. Repo rate is the rate at which our banks borrow rupees from RBI. A reduction in the repo rate will help banks to get money at a cheaper rate. When the repo rate increases borrowing from RBI becomes more expensive. The rate charged by RBI for its Repo operations is 5.75% and Reverse Repo rate is 3.25%. When RBI lends money to bankers against approved securities for meeting their day to day requirements or to fill short term gap.It takes approved securities as securityand lends money.These types of operations are generally for overnight operations. ======================== Updating today-27th of March 2010-for ur SBI clerk interview. ------------------------------------------------------------------------------ The Reserve Bank of India (RBI) has hiked the repo and reverse repo rate by 25 basis points (100 bps=1%). The new repo and reverse repo rate is 5% and 3.5%, respectively. The hike comes into effect immediately.
Current repo rate?
current repo rate is 8.5%
How many differences between repo rate and reverse repo rate?
Assuming the State Bank of India, the spread between repo rate and reverse repo rate has trended towards 1.00%.
What is CRR rate by RBI of India?
the Repo rate, Reserve repo rate and CRR as of 03 January 2009 are as follows: Repo Rate: 5.6% CRR: 5% Reverse Repo rate: 4.1% Source: RBI
What is repo rate?
the repo rate is the rate that the reserve bank lends money to commercial banks
