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Repo rate

The repo rate is the RBI policy rate at which banks borrow overnight under the liquidity adjustment framework.

Repo sits at the centre of India’s LAF corridor alongside related facilities such as the SDF and MSF.

The MPC sets the repo rate; broader stance and communication are covered under RBI policy.

Changes influence borrowing costs, bond yields, and rate-sensitive equity sectors.

This entry defines the instrument; meeting-level market reaction narratives belong with RBI policy.

Part of the Market Pulse Term of the Day series — factual market vocabulary, not investment advice.