Bank Rates
|
|
From Wikipedia, the free
encyclopedia Bank rate,
also referred to as the discount rate, is the rate of interest which a
central bank charges on the loans and advances that it extends to commercial
banks and other financial intermediaries. Changes in the bank rate are often
used by central banks to control the money supply.
|
|
|
Difference between Bank Rate and Repo Rate
While repo rate is a short-term measure, i.e. applicable to short-term loans
and used for controlling the amount of money in the market, bank rate is a
long-term measure and is governed by the long-term monetary policies of the
governing bank concerned.
Bank rate, also referred to as the discount rate, is the rate of interest
which a central bank charges on the loans and advances that it extends to
commercial banks and other financial intermediaries. Changes in the bank
rate are often used by central banks to control the Money supply
current bank rate at which RBI lends to Banks is 6%.
Repo rate Whenever the banks have any shortage of funds they can borrow it
from RBI. Repo rate is the rate at which our banks borrow rupees from RBI. A
reduction in the repo rate will help banks to get Money at a cheaper rate.
When the repo rate increases borrowing from RBI becomes more expensive
current repo rate is 4.75%
The Reverse repo rate is the rate at which the RBI borrows from the banks,
while the bank rate is the rate at which the banks borrow from the RBI
Regional Bank Rate
Though influenced heavily by the none Interest rate, all bank rates will
vary regionally. It pays to compare interest rates on a regional or
state-wide level.
United Kingdom
In the UK bank rates are set by the Bank of England's Monetary Policy
Committee. The key interest rate is called the official bank rate[1] which
is the lowest rate at which the Bank acts as lender of last resort to the
money markets.
Canada
In Canada, the bank rate is defined as the upper limit of the overnight
rate band announced each month by the Bank of Canada, (making it the target
overnight rate + 0.25%
|
More related links about
Bank Rates
|
|
|
-
18 Jan 2010 ... International Currency News. Yen Climbs as Obama
Bank ...
International Conversion
Rates. Int'l
Conversion Rates.
Special Reports ...
finance.kalpoint.com/
For the company, see Bankrate.
Bank rate, also
referred to as the discount
rate, is the
rate of interest
which a central bank
charges on the loans and ...
en.wikipedia.org/wiki/Bank_rate
-
22 Jan 2010 ... The Fed holds its first meeting on interest
rates of 2010. No
one expects the central
bank to boost
rates but
investors will be looking for ...
news.yahoo.com/s/ap/20100122/ap_on_bi_st_ma_re/us_wall_street
-
Forex.com.pk (Pakistan) offers daily Inter
Bank rates in
Pakistan. Also listing Forex Brokers and Banks directory of Pakistan.
Featuring Forex news and ...
www.forex.com.pk/inter_bank_rates.asp
-
-
Compare mortgage, refinance, insurance and CD
rates. Expert
analysis of home loan finance topics and trends.
-
Bank rates are
charged by a country's central or federal
bank on loans and
advances so as to control money supply in the economy and the banking
sector.
www.economywatch.com ›
Investment
|
|
| |
|
