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A repo rate is an interest rate defined by the difference between the buying and selling prices of repurchase agreements (repos).
Although the central bank recently raised its repo rate by 25 basis points, this is not expected substantially to affect consumer interest rates.
Repurchase agreements are typically short-term (often overnight) loans that are bought and sold by banks in case they need to adjust their liquidity. Central banks commonly raise and lower repo rates as part of their monetary policy. Repo rates can be raised to help rein in inflation and/or tamp down economic growth, as banks will be less inclined to borrow from the central bank when the cost of funds is higher, general interest rates may rise in response, consumption and investment may be reduced by the higher borrowing costs, and aggregate demand in the economy will be restrained. By cutting its official repo rate, a central bank may cause this transmission mechanism (as described above) to work in the opposite manner, thereby boosting aggregate demand, economic growth and/or inflation.
Repo sazba je úroková sazba definovaná rozdílem mezi kupní a prodejní cenou dohod o zpětném odkupu (repo).
Ačkoli centrální banka nedávno zvýšila svou repo sazbu o 25 bazických bodů, nemělo by to výrazně ovlivnit úrokové sazby pro spotřebitele.
Dohody o zpětném odkupu jsou typicky krátkodobé (často jednodenní) půjčky, které banky kupují a prodávají v případě, že potřebují upravit svou likviditu. Centrální banky běžně zvyšují a snižují repo sazby coby součást své měnové politiky. Repo sazby lze zvýšit, což pomáhá redukovat inflaci nebo utlumit ekonomický růst, protože banky si budou méně půjčovat z centrální banky, když jsou náklady na financování vyšší, v důsledku toho se mohou zvýšit obecné úrokové sazby, a obecná poptávka v ekonomice bude umírněná. Naopak snížením své oficiální repo sazby centrální banka může tento transmisní mechanismus (popsaný výše) obrátit, tedy povzbudit celkovou poptávku, ekonomický růst a/nebo inflaci.
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Simply subscribe to receive our Business Term of the Day at no charge to your inbox each business day, with explanation in English and Czech.
