Understanding the difference between bank rate and repo rate is crucial for grasping monetary policy. The bank rate is the interest rate at which the central bank lends to commercial banks, influencing long-term interest rates and economic activity. Conversely, the repo rate is the rate at which commercial banks borrow short-term funds from the central bank, impacting liquidity and short-term borrowing costs. Both rates play a pivotal role in regulating inflation and stabilizing the economy, with changes in these rates affecting loan and deposit rates across the financial system.
Learn more: https://www.aavas.in/blog/bank-
Like
Comment
Share
