Repo Rate : Recent Update
The Reserve Bank of India (RBI) reduced the repo rate by 25 basis points, bringing it down to 6%.The repo rate is the interest rate at which the RBI lends short-term funds to commercial banks against government securities.It serves as a primary tool for the RBI to regulate liquidity, control inflation, and influence overall economic activity.By adjusting the repo rate, RBI can either encourage banks to borrow more (by lowering the rate) or discourage borrowing (by raising the rate), thus influencing the money supply in the economy.
