Global Markets Intermediate

Central Bank / Repo Rate

💡 In plain English: The interest rate at which the central bank lends to commercial banks — the master dial that influences every loan rate in the country.

Definition

The interest rate at which a central bank (RBI in India, Fed in USA) lends to commercial banks — the foundation of all other interest rates.

📌 Real-World Example

RBI repo rate: 6.5% (2024). When RBI raises it: home loan rates rise, EMIs increase, stock markets often fall. When cut: borrowing gets cheaper, markets often rally.

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⚠️ Educational Content: All definitions and examples on this page are for educational and consultancy reference purposes only. They do not constitute financial, legal, or investment advice. Moneykar is not registered with SEBI, CBUAE, SCA, or any financial regulator. Consult a qualified professional before making financial decisions.

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