What is meant by repo rate of rbi
The current Repo Rate as fixed by the RBI is 5.15%. On 7 August 2019, the Reserve Bank of India lowered the repo rate (key lending rate) by 35 basis points (bps). That was the fourth time this year that the repo rate had been cut by the RBI. In financial terms one Basis Point is a unit equivalent to 0.01% i.e. 1/100th of a percent. Thus 10 bps means 0.10% and 100 bps means 1%. BPS mostly used to indicate the changes in interest rate and also bonds. When news comes that RBI has reduced Scroll explainer Why the business media is obsessing over RBI cutting rates and how it affects you Once again there is speculation about what the Reserve Bank of India’s monetary policy