What is a repo rate?
submitted by ilaya

stevie09

The repo rate is the interest rate that the central bank charges banks when they borrow money. It's important because it influences interest rates in the economy. If the repo rate increases, loans tend to get more expensive for everyone, and if it decreases, borrowing gets cheaper.

rat

The repo rate is what the central bank charges banks to lend them money. It's a tool used to control liquidity in the economy. When the repo rate goes up, borrowing becomes more expensive, which can help curb inflation. Conversely, lowering the repo rate makes borrowing cheaper, which makes it easier for banks to lend more money, which stimulates economic growth.