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Reserve Bank of India Cuts Repo Rate and Reverse Repo Rate
- Filed under: Bank, Interest Rates
- Date: Dec 7,2008
Reserve Bank of India Cuts Repo Rate and Reverse Repo Rate , RBI cuts repo rate by 100 basis points to 6.5 percent and cuts reverse repo rate by 100 basis points to 5 percent and there is no change this time to CRR, SLR. The rate cut to Repo and Reverse Repo Rate will come into effect from December 8.
What is 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).
So RBI is sending signals to Banks to have the lending rate to public cut down .We will soon see a lot of banks announcing more lending rate cut .
