Question

Who sets the repo rate?

Answer 1

Repo rate is concerned with the rate at which commercial banks acquire cash by offering their securities to the Central bank of our country that is the Reserve Bank of India (RBI) to keep up with liquidity, if there should arise an occurrence of deficiency of assets or because of some legal measures. It is one of the main instruments of RBI to monitor inflation.

Also see:

• Repo Rate
• Reverse Repo Rate