Repo rate encyclopedia topics

Related Searches

on Ask.com

What determines the...

Explain repo rate

Bank of england rep...

Statutory liquidity...

South african reser...

Consumer price inde...

Demand pull inflati...

What is a repurchas...

Repo rate - 3 reference results

Repo Rate
Find Banking Rates & Quotes. Your Business Solution Business.com
Sponsored Results www.business.com

Repo Rate

Repo rate is the rate at which the banks can borrow money from a central bank of the country in order to avoid scarcity of funds.For eg, whenever the banks have any shortage of funds they can borrow it from Reserve Bank of India (RBI). Thus 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. It is also a financial & economic tool in the hands of government to control the availability of money supply in the market by altering the repo rate from time to time.

External links

Wikipedia, the free encyclopedia © 2001-2006 Wikipedia contributors (Disclaimer)
This article is licensed under the GNU Free Documentation License.
Last updated on Wednesday October 01, 2008 at 20:21:45 PDT (GMT -0700)
View this article at Wikipedia.org - Edit this article at Wikipedia.org - Donate to the Wikimedia Foundation

Repo Rate
Find Banking Rates & Quotes. Your Business Solution Business.com
Sponsored Results www.business.com

Official bank rate

The official bank rate (also called the Bank of England base rate) is the Bank of England's key interest rate for enacting monetary policy.

When an announcement of the change in interest rates is made this is the rate the Bank of England is changing. Changes are recommended by the Monetary Policy Committee and enacted by the Governor.

History

The name of this key interest rate has changed over the years. The current name "Official Bank Rate" was introduced in 2006 and replaced the previous title "Repo Rate" (repo is short for repurchase agreement) in 1997. Previously (between 1981 and 1997) the title was "Minimum Band 1 Dealing Rate" and prior to that the "Minimum Lending Rate". It is the rate at which the reserve bank lends money to the banks.