Explain how bank rate is helpful in controlling of credit creation.
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Explain how 'Repo Rate' can be helpful in controlling credit creation. ... Repo rate is used as the main instrument of credit control. When the Central Bank raises the repo rate, there will be an increase in the cost of borrowing which reduces commercial banks borrowing from the Central Bank.
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Explain how 'Repo Rate' can be helpful in controlling credit creation. ... Repo rate is used as the main instrument of credit control. When the Central Bank raises the repo rate, there will be an increase in the cost of borrowing which reduces commercial banks borrowing from the Central Bank.
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