Repo vs bank rate
Upcoming SlideShare
Loading in...5
×
 

Repo vs bank rate

on

  • 490 views

 

Statistics

Views

Total Views
490
Views on SlideShare
490
Embed Views
0

Actions

Likes
0
Downloads
7
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Repo vs bank rate Repo vs bank rate Presentation Transcript

  • Repo vs Bank ratePMI(purchasing Manager’s Index)
  • Two parties are constantly involved– the national bank (RBI) and the commercial bankBoth repo rates and bank rates help to raise fundsboth are considered methods to control the currency supply forthe economy and the banking sectorBANK RATE– Discount rate– Involves loans– No collateralsREPO RATE– Repurchase rate– Involves securities– Securities as collaterals
  • RBIBANKSTOCKS T-BILLBONDSGives money toprovide liquidityGives securities (collaterals)With repurchase agreement
  • PMI• An indicator of the economic health of the manufacturingand services sector.• Market & HSBC based monthly data• PMI above 50 is always good for the economy.• The PMI index is based on five major indicators:– new orders,– inventory levels,– production,– supplier deliveries and– the employment environment