reverse repo

Repo rate is the rate at which central bank of a country (in our case Reserve Bank of India) lends money to commercial banks. In turn, banks need to deposit securities such as treasury bills or government bonds as collateral to avail these loans.

The Reserve Bank of India will stop conducting 28-day variable rate reverse repo (VRRR) auctions, considering the current banking system liquidity conditions, but will continue with 14-day VRRR auctions, the central bank chief said on Friday.

India's central bank, the Reserve Bank of India (RBI), is expected to keep its key interest rate unchanged at 6.5% for the fourth consecutive time, according to a Bloomberg survey. Inflation remains above the RBI's target range of 4%, and the RBI is likely to maintain a hawkish policy stance.

Crisil has reiterated its December 2021 forecast of India’s gross domestic product (GDP) growing at 7.8% in next fiscal, FY23. The research firm said the potential upside due to an early end of a mild third wave of Covid infections will be offset by the ongoing geopolitical strife stemming from Russia’s invasion of Ukraine, which is dampening global growth and pushing up oil & commodity prices.

The Monetary Policy Committee (MPC) may go for a hike of up to 0.25 per cent in the reverse repo rate at which the RBI absorbs excess liquidity and leave the repo rate at which it lends, to narrow the policy rate corridor, a British brokerage said on Thursday.

The Reserve Bank of India (RBI) is likely to keep its repo rate, the rate at which it lends to banks, on hold after the monetary policy committee meeting this week.

In a quiet move, the RBI has managed to reduce the relevance of the reverse repo rate. reverse repo is the rate at which the RBI borrows from banks and sets the floor for money markets.

The Reserve Bank of India's (RBI) monetary policy committee (MPC) on Wednesday unanimously decided to keep repo rate unchanged at 4 per cent for the ninth consecutive time and continued with the accommodative stance.

In a quiet move, the Reserve Bank of India (RBI) has managed to reduce the relevance of the reverse repo rate. reverse repo is the rate at which the RBI borrows from banks and sets the floor for money markets.

RBI is unlikely to hike repo rate in its bi-monthly monetary policy review, indicates a survey by the Times of India Online.

Citing the massive spike in credit growth during the first half and the steeper fall in deposits and the resultant rise in term money rates, coupled with the record high borrowings, an SBI report has called for a 20 bps increase in reverse repo rate outside the MPC ambit so that the central bank find buyers for the flooding new debt papers.

FIIs pulled out Rs 580 crore from Indian equities during the day while domestic institutional investors (DIIs) who were net sellers on Tuesday, limited the losses by pumping in more than Rs 371 crore.