Repo Rate

Repo rate is the rate at which the central bank lends money to the commercial banks in case of fund crunch. It is a tool used by the monetary authorities to control inflation. The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI), during the 3-day meeting that began on December 2, has decided to keep the repo rate unchanged at 4% and maintain the policy stance at accommodative until the COVID-19 impact is mitigated.