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A repo rate, or repurchase rate, is the interest rate at which a central bank lends money to commercial banks. The term "repo" comes from "repurchase agreement". Central banks use repo rates to control the money supply in the economy and influence economic activity. For example, during high inflation, the RBI may increase the repo rate to make borrowing more expensive for businesses and industries. This slows down investment and money supply in the market. #reelkarofeelkaro #reelsviral #reelitfe
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