{"id":8197,"date":"2024-06-27T12:46:21","date_gmt":"2024-06-27T12:46:21","guid":{"rendered":"https:\/\/goldenpi.com\/blog\/?p=8197"},"modified":"2026-04-14T06:48:35","modified_gmt":"2026-04-14T06:48:35","slug":"impact-of-unchanged-repo-rate-on-government-securities-2024","status":"publish","type":"post","link":"https:\/\/goldenpi.com\/blog\/fixed-income\/impact-of-unchanged-repo-rate-on-government-securities-2024\/","title":{"rendered":"Impact of Unchanged Repo Rate on Government Securities 2024"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Interest rate is a key factor influencing borrowing and the investment market. A basic explanation indicates high interest rates attract investors while discouraging borrowers. The repo rate has a crucial role to play in the steering of interest rates. Whenever the repo rate moves, interest rates tend to move in the same direction. Any hike, fall, or even persistent rate for a prolonged time can have multiple effects on the interest rate and, to an extent, the investment market; the government securities are no exception.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The central bank of the country, or the Reserve Bank of India, sets the repo rate. With the latest report coming in, the <\/span><b>current repo rate in India<\/b><span style=\"font-weight: 400;\"> has stayed unchanged at 6.5% for the 8th consecutive time. It certainly points out a significant state of the current economy and will have an important impact on government securities.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Join us as we explore the working mechanism of the repo rate, understand the reasons behind its movements, and, most importantly, discover how its steady place will influence the <a href=\"https:\/\/goldenpi.com\/government-securities\">G sec investments<\/a>.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_79_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/goldenpi.com\/blog\/fixed-income\/impact-of-unchanged-repo-rate-on-government-securities-2024\/#What_is_the_Repo_Rate\" >What is the Repo Rate?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/goldenpi.com\/blog\/fixed-income\/impact-of-unchanged-repo-rate-on-government-securities-2024\/#How_is_the_Repo_Rate_Fixed\" >How is the Repo Rate Fixed?<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/goldenpi.com\/blog\/fixed-income\/impact-of-unchanged-repo-rate-on-government-securities-2024\/#When_Does_the_Repo_Rate_Increase\" >When Does the Repo Rate Increase?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/goldenpi.com\/blog\/fixed-income\/impact-of-unchanged-repo-rate-on-government-securities-2024\/#When_Does_the_Repo_Rate_Decrease\" >When Does the Repo Rate Decrease?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/goldenpi.com\/blog\/fixed-income\/impact-of-unchanged-repo-rate-on-government-securities-2024\/#When_Does_the_Repo_Rate_Remain_the_Same\" >When Does the Repo Rate Remain the Same?<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/goldenpi.com\/blog\/fixed-income\/impact-of-unchanged-repo-rate-on-government-securities-2024\/#How_Does_the_Unchanged_Repo_Rate_Affect_Government_Securities_in_2024\" >How Does the Unchanged Repo Rate Affect Government Securities in 2024?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/goldenpi.com\/blog\/fixed-income\/impact-of-unchanged-repo-rate-on-government-securities-2024\/#When_the_Repo_Rate_Increases\" >When the Repo Rate Increases<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/goldenpi.com\/blog\/fixed-income\/impact-of-unchanged-repo-rate-on-government-securities-2024\/#When_the_Repo_Rate_Decreases\" >When the Repo Rate Decreases<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/goldenpi.com\/blog\/fixed-income\/impact-of-unchanged-repo-rate-on-government-securities-2024\/#When_the_Repo_Rate_Remains_the_Same\" >When the Repo Rate Remains the Same<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/goldenpi.com\/blog\/fixed-income\/impact-of-unchanged-repo-rate-on-government-securities-2024\/#Invest_in_Government_Securities_with_GoldenPi\" >Invest in Government Securities with GoldenPi<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/goldenpi.com\/blog\/fixed-income\/impact-of-unchanged-repo-rate-on-government-securities-2024\/#FAQs_About_Impact_of_Unchanged_Repo_Rate_on_Government_Securities_2024\" >FAQs About Impact of Unchanged Repo Rate on Government Securities 2024<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/goldenpi.com\/blog\/fixed-income\/impact-of-unchanged-repo-rate-on-government-securities-2024\/#1_What_is_the_repo_rate\" >1. What is the repo rate?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/goldenpi.com\/blog\/fixed-income\/impact-of-unchanged-repo-rate-on-government-securities-2024\/#2_How_is_the_repo_rate_decided\" >2. How is the repo rate decided?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/goldenpi.com\/blog\/fixed-income\/impact-of-unchanged-repo-rate-on-government-securities-2024\/#3_How_are_government_securities_influenced_when_the_repo_rate_reduces\" >3. How are government securities influenced when the repo rate reduces?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/goldenpi.com\/blog\/fixed-income\/impact-of-unchanged-repo-rate-on-government-securities-2024\/#4_What_is_the_reverse_repo_rate\" >4. What is the reverse repo rate?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/goldenpi.com\/blog\/fixed-income\/impact-of-unchanged-repo-rate-on-government-securities-2024\/#5_What_are_the_latest_repo_rate_and_reverse_repo_rate\" >5. What are the latest repo rate and reverse repo rate?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n\n<h2><span class=\"ez-toc-section\" id=\"What_is_the_Repo_Rate\"><\/span><strong>What is the Repo Rate?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-8226 size-full\" src=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/07\/01102247\/What-is-the-Repo-Rate.jpg\" alt=\"What is the Repo Rate?\" width=\"1160\" height=\"550\" srcset=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/07\/01102247\/What-is-the-Repo-Rate.jpg 1160w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/07\/01102247\/What-is-the-Repo-Rate-300x142.jpg 300w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/07\/01102247\/What-is-the-Repo-Rate-1024x486.jpg 1024w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/07\/01102247\/What-is-the-Repo-Rate-768x364.jpg 768w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/07\/01102247\/What-is-the-Repo-Rate-585x277.jpg 585w\" sizes=\"(max-width: 1160px) 100vw, 1160px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Banks levy a certain rate of interest on borrowers. Similarly, when banks borrow from the central bank of the country, i.e., the Reserve Bank of India, a specific interest rate is charged. The rate at which RBI lends money is called the <a href=\"https:\/\/en.wikipedia.org\/wiki\/Liquidity_adjustment_facility#:~:text=The%20rate%20charged%20by%20Reserve,called%20the%20reverse%20repo%20rate.\">repo rate<\/a>.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_is_the_Repo_Rate_Fixed\"><\/span><strong>How is the Repo Rate Fixed?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">In order to understand the movement of the <\/span><b><a href=\"https:\/\/goldenpi.com\/blog\/bank-fd\/how-rbis-repo-rate-impacts-fixed-deposit-interest\/\">repo <\/a>interest rate<\/b><span style=\"font-weight: 400;\">, an understanding of two important terms is required. The first is inflation. It occurs when the purchasing power of the money decreases. Suppose, you spend INR 1000 for dining out in 2023, but the same meal is costing you INR 1200 in 2024. It means inflation has hit.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The second term to remember is the recession. It is recorded when economic activities reduce.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"When_Does_the_Repo_Rate_Increase\"><\/span><b>When Does the Repo Rate Increase?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">During inflation, the central bank tends to <a href=\"https:\/\/goldenpi.com\/blog\/market-view\/impact-of-hike-in-repo-rate-on-the-indian-economy\/\">hike the repo rate<\/a> since it limits or demotivates banks to borrow. The controlled borrowing ultimately restricts the economy\u2019s money supply and aids in curbing inflation.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"When_Does_the_Repo_Rate_Decrease\"><\/span><b>When Does the Repo Rate Decrease?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">In the event of a recession, the RBI reduces the repo rate to encourage borrowing, thus increasing the money supply to the economy.\u00a0<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"When_Does_the_Repo_Rate_Remain_the_Same\"><\/span><b>When Does the Repo Rate Remain the Same?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">When the economy is stable, with no alarming <a href=\"https:\/\/goldenpi.com\/blog\/investment-guide\/how-senior-citizens-can-protect-savings-from-inflation\/\">inflation<\/a> and recession, the repo rate can remain the same.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_Does_the_Unchanged_Repo_Rate_Affect_Government_Securities_in_2024\"><\/span><strong>How Does the Unchanged Repo Rate Affect Government Securities in 2024?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-8227\" src=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/07\/01102249\/How-Does-the-Unchanged-Repo-Rate-Affect-Government-Securities-in-2024.jpg\" alt=\"How Does the Unchanged Repo Rate Affect Government Securities in 2024?\" width=\"1160\" height=\"550\" srcset=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/07\/01102249\/How-Does-the-Unchanged-Repo-Rate-Affect-Government-Securities-in-2024.jpg 1160w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/07\/01102249\/How-Does-the-Unchanged-Repo-Rate-Affect-Government-Securities-in-2024-300x142.jpg 300w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/07\/01102249\/How-Does-the-Unchanged-Repo-Rate-Affect-Government-Securities-in-2024-1024x486.jpg 1024w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/07\/01102249\/How-Does-the-Unchanged-Repo-Rate-Affect-Government-Securities-in-2024-768x364.jpg 768w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/07\/01102249\/How-Does-the-Unchanged-Repo-Rate-Affect-Government-Securities-in-2024-585x277.jpg 585w\" sizes=\"(max-width: 1160px) 100vw, 1160px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">The correlation between the repo rate and any investment is quite straightforward. If the repo rate goes up, banks and other financial institutions will also offer enhanced interest rates to attract more and more investors. Investors will also be interested in taking advantage of higher returns. The same rule applies to government securities.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">One must know the impacts of any rise or fall in repo rates to best understand what happens when it remains at the same level.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"When_the_Repo_Rate_Increases\"><\/span><strong>When the Repo Rate Increases<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">If the repo rate increases, the <a href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/post-office-fd-interest-rates-2025\/\">interest<\/a> rates on new government securities will increase, which is good news. However, it may not be equally favorable for existing government securities. It is not hard to guess that some investors may want to avail of the revised higher rates. This will encourage them to sell the existing securities, reducing their value.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"When_the_Repo_Rate_Decreases\"><\/span><strong>When the Repo Rate Decreases<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">If there is a decrease in the repo rate, the interest rate offered on new issues may be lower than the rates offered by existing issues. In that case, old securities may generate better returns than new issues, increasing the formers\u2019 value in the market.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"When_the_Repo_Rate_Remains_the_Same\"><\/span><strong>When the Repo Rate Remains the Same<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The answer to \u2018<\/span><b>What is current repo rate in India<\/b><span style=\"font-weight: 400;\">?\u2019 has remained the same since December 7, 2022. It is 6.5%. As the repo rate stays the same, so can the interest rates offered under government securities. The stability in the repo rate can be mirrored in the government security market. Investors will be motivated to hold onto their units due to the lack of better returns. On the other hand, new issues may also be equally alluring for investors looking to widen their portfolios. Overall, both existing and new issues of government securities will enjoy similar popularity.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Investors invested at floating rates have different experiences at the time of market volatility than investors invested at fixed rates. A hike in the rates allows them to harness higher returns, while a lower rate is concerning since the returns will hit the south. As the repo rate maintains the same level, investors holding floating rate securities can expect to receive interest at a consistent rate.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Invest_in_Government_Securities_with_GoldenPi\"><\/span><strong>Invest in Government Securities with GoldenPi<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">GoldenPi is SEBI registered bond platform and a BSE registered debt broker committed to making bonds and debentures more accessible and investment more seamless for investors, both seasoned and newbies. The platform is well organized in different segments, which makes it easy to navigate and information within reach at all times. It is updated with the latest issues of <a href=\"https:\/\/goldenpi.com\/blog\/investment-guide\/government-securities\/\">government securities<\/a> and all associated information one might require when finalizing an investment decision.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As you explore all your options and read about them on GoldenPi, here is its simple and easy-to-follow 3-step investment guide:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Step 1:<\/b><span style=\"font-weight: 400;\"> Complete your KYC; digital documentation will make the process convenient.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Step 2:<\/b><span style=\"font-weight: 400;\"> Select the security; consider the interest rates, tenures, credit ratings, and other details.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Step 3:<\/b><span style=\"font-weight: 400;\"> Make the payment; the purchased units will be transferred to your account on the day following the transaction date.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"FAQs_About_Impact_of_Unchanged_Repo_Rate_on_Government_Securities_2024\"><\/span><strong>FAQs About Impact of Unchanged Repo Rate on Government Securities 2024<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"1_What_is_the_repo_rate\"><\/span><strong>1. What is the repo rate?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The repo rate is RBI\u2019s lending rate. In a transaction of borrowing, the lender lends the money and charges interest on the principal amount throughout the tenure. The repo rate is the equivalent of the interest rate that RBI charges when lending money to banks.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_How_is_the_repo_rate_decided\"><\/span><strong>2. How is the repo rate decided?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The Monetary Policy Committee (MPC) RBI is responsible for setting and announcing the repo rate. The committee factors in the macroeconomic situation of the country. It makes the decision based on many important factors, like inflation, exchange rate, economic growth, and fiscal deficits.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_How_are_government_securities_influenced_when_the_repo_rate_reduces\"><\/span><strong>3. How are government securities influenced when the repo rate reduces?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">When the repo rate reduces, the interest rates offered by new government securities tend to be lower than the rates offered by already-bought securities. So, existing securities become more attractive and notice an increase in the secondary market.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"4_What_is_the_reverse_repo_rate\"><\/span><strong>4. What is the reverse repo rate?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The reverse repo rate is charged by the central bank of the country, RBI, when it borrows money from the country\u2019s commercial bank. This monetary policy instrument can be utilized to control the money supply or liquidity of the economy.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"5_What_are_the_latest_repo_rate_and_reverse_repo_rate\"><\/span><strong>5. What are the latest repo rate and reverse repo rate?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The repo rate is always greater than the reverse repo rate. The current repo rate stands at 6.5%, which has remained the same for the 8th time in a row since February 8, 2023. The current reverse repo rate is 3.35%.<\/span><\/p>\n<p><script type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\",\"@type\":\"FAQPage\",\"mainEntity\":[{\"@type\":\"Question\",\"name\":\"1. What is the repo rate?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"The repo rate is RBI\u2019s lending rate. In a transaction of borrowing, the lender lends the money and charges interest on the principal amount throughout the tenure. The repo rate is the equivalent of the interest rate that RBI charges when lending money to banks.\"}},{\"@type\":\"Question\",\"name\":\"2. How is the repo rate decided?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"The Monetary Policy Committee (MPC) RBI is responsible for setting and announcing the repo rate. The committee factors in the macroeconomic situation of the country. 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A basic explanation indicates high interest rates attract investors while&hellip;<\/p>\n","protected":false},"author":8,"featured_media":8228,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"no","_lmt_disable":"","footnotes":""},"categories":[226,246],"tags":[241,251,252],"class_list":["post-8197","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fixed-income","category-govt-securities","tag-government-securities","tag-g-sec-investment","tag-invest-in-government-securities"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Understanding Impact of Unchanged Repo Rate : Insights by GoldenPi<\/title>\n<meta name=\"description\" content=\"Explore the repo interest rate and its impact on investments with GoldenPi. 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