2023
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What is the repo rate increased by the RBI?
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25 basis points
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35 basis points
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50 basis points
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75 basis points
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Explanation:
Detailed explanation-1: -Some segments gain as a result of the rate hike while others may suffer losses. RBI recently hiked the repo rate by 35 basis points to 6.25% from 5.90%.
Detailed explanation-2: -For example, it could be said that the interest rate offered by your bank is 50 basis points higher than the Secured Overnight Financing Rate (SOFR). A bond whose yield increases from 5% to 5.5% is said to increase by 50 basis points. Interest rates that have risen by 1% are said to have increased by 100 basis points.
Detailed explanation-3: -The stance and the impact The RBI has raised the repo rate by 250 basis points (bps) since May 2022, thereby increasing the EBLR by 250 bps.
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