Question

How does the repo rate affect consumers?

Answer 1

The consumers will acquire more from banks accordingly, settling the inflation. A decrease in the repo rate can prompt the banks to cut down their loan rates. This can end up being advantageous for retail credit borrowers. In any case, to cut down the credit EMIs, the money lenders need to decrease their base loan rate.

Also see:

• Repo Rate
• Reverse Repo Rate