Consequently, the reverse repo
rate under the liquidity adjustment facility will be raised to seven per cent and the marginal standing facility rate and bank rate to nine per cent.
The changes, involving reverse repos
and derivatives, reduce the assets included in the calculation and make it easier for them to meet leverage ratio requirements, depending on the final rules adopted by national regulators.
The reverse repo
rate, an unofficial guidance interest rate for the market, is the level at which the central bank borrows money from other banks.
The Adviser has recently met with representatives of both rating agencies to discuss the funds' desire to use additional borrowings and/or reverse repo
financing to redeem additional preferred shares.
India s repo rate is at a near three-year high and the reverse repo
is at its highest level in more than a decade.
On 25 January 2011, the RBI increased the repo rate (at which it lends to banks) and the reverse repo
rate (at which it borrows from banks) by 0.
The reverse repo
rate -- the rate it pays to banks for deposits -- was also increased to 5.
9 billion during its Reverse Repo
Open Market Operation (Injection) in the government of Pakistan Market Treasury Bills and Pakistan Investment Bonds.
The bank announced hikes in repo and reverse repo
rates by 0.
SAMA has decided to lower its reverse repo
rate from 50 basis points to 25 basis points effective immediately," a financial source said.
JEDDAH: The Saudi Arabian Monetary Agency (SAMA) yesterday lowered its reverse repo
rate from 50 basis points to 25 basis points to boost credit growth.
Further rate cuts are expected in Saudi Arabia in 2009 as the economy witnesses slower growth, said Standard Chartered Bank as it forecast reverse repo
rate to come down to 0.