Don’t get perturbed by the noise around interest rates. Keep track of the trend and directional shift, if any, for this could affect overall portfolio returns
August 12, 2022 / 01:06 PM IST
So, while it is not necessary for the layman to know the exact repo rate, tracking the directional shift is important
Newspaper headlines from last week were dominated by a lot of analysis around what the Reserve Bank of India (RBI)’s stance on interest rate would be. Once announced on Friday, the focus shifted to views and opinions around whether the 50 basis points (bps) hike in the repo rate was suitable or not.
In simple parlance, the repo rate is the rate at which the central bank repurchases government securities such as bonds and T-bills from commercial banks. This is…