(AKA: Repo Rate, RBI Repo Rate)

Repo Rate

Executive Definition

The key interest rate at which the Reserve Bank of India (RBI) lends money to commercial banks.

The Repo Rate (Repurchasing Option Rate) is the key benchmark interest rate set by the Reserve Bank of India’s Monetary Policy Committee (MPC).

Impact on Personal Finance

Home & Car Loans: When the Repo Rate rises, floating loan interest rates increase, raising monthly EMIs.
Fixed Deposits: A higher Repo Rate usually leads to higher fixed deposit interest rates offered by commercial banks.

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