Insights On The Current Repo Rate Change In 2022
The Reserve Bank of India (RBI) is the central bank of India that controls the monetary policy of the Indian currency. On 8th June 2022, the repo rate increased from 4.40% to 4.90%. The main goal behind this is to make inflation stable and maintain monetary stability.
When we face a financial crisis we approach the banks. Similarly, banks approach the Reserve Bank of India (RBI) if they face a financial crisis.
What Is Repo Rate?
Repo rate is the rate at which the Central Bank of India i.e RBI lends money to commercial banks to balance the liquidity and fulfill the requirements of businesses.
The RBI repo rate is the most important policy interest rate in India. From time to time as part of the monetary policy review RBI reviews the repo rate.
From the Central Bank of India Banks borrow money with a legal agreement. And the rate of interest charged by RBI is called the Repo Rate.
Here is the history of Repo Rate changes until now. Have a quick look at it from the below table.
| Updated Date | Repo Rate |
| 8 June 2022 | 4.90% |
| 4 May 2022 | 4.40% |
| 22 May 2020 | 4.00% |
| 27 March 2020 | 4.40% |
| 04 October 2019 | 5.15% |
| 07 August 2019 | 5.40% |
| 06 June 2019 | 5.75% |
| 04 April 2019 | 6% |
| 07 February 2019 | 6.25% |
| 01 August 2018 | 6.50% |
| 06 June 2018 | 6.25% |
| 07 February 2018 | 6.00% |
| 02 August 2017 | 6.00% |
| 04 October 2016 | 6.25% |
| 05 April 2016 | 6.50% |
| 29 September 2015 | 6.75% |
| 02 June 2015 | 7.25% |
| 04 March 2015 | 7.50% |
| 15 January 2015 | 7.75% |
| 28 January 2014 | 8.00% |
| 29 October 2013 | 7.75% |
| 20 September 2013 | 7.50% |
| 03 May 2013 | 7.25% |
| 17 March 2011 | 6.75% |
| 25 January 2011 | 6.50% |
| 02 November 2010 | 6.25% |
| 16 September 2010 | 6.00% |
| 27 July 2010 | 5.75% |
| 02 July 2010 | 5.50% |
| 20 April 2010 | 5.25% |
| 19 March 2010 | 5.00% |
| 21 April 2009 | 4.75% |
| 05 March 2009 | 5.00% |
| 05 January 2009 | 5.50% |
| 08 December 2008 | 6.50% |
| 03 November 2008 | 7.50% |
| 20 October 2008 | 8.00% |
| 30 July 2008 | 9.00% |
| 25 June 2008 | 8.50% |
| 12 June 2008 | 8.00% |
| 30 March 2007 | 7.75% |
| 31 January 2007 | 7.50% |
| 30 October 2006 | 7.25% |
| 25 July 2006 | 7.00% |
| 24 January 2006 | 6.50% |
| 26 October 2005 | 6.25% |
How does RBI calculate the Repo Rate?
As mentioned above, RBI calculates the Repo Rate based on the inflation of the market of the country.
Difference Between Reverse Repo Rate and Repo Rate
The Repo rate is the Rate at which the Central Bank lends money from the commercial banks against government securities. While Reverse Repo Rate is the rate of interest given by the Central Bank to the commercial banks that deposit funds in the RBI treasury.
