Repo Rate. Forex with Alpari

Country:	Great Britain
Definition:	Repo rate.
Description:	Repo rate is an interest rate at which the BoE lends to banks and other financial institutes for short-term period (usually on an overnight basis). This interest rate is the main one in Great Britain (repo — repurchase agreement — an agreement, in accordance with which the seller is to repurchase the security from the buyer at a pre-agreed price at a specific date in the future). BOE set the upper edge of inflation at 2, in case consumer prices rise is quicker than 2, interest rates hikes are highly probable.
Influence:	High interest rates decrease consumer lending growth rates and stimulate savings increase, which triggers economic development slowdown. However, speculations on rates hikes usually trigger consumer lending boom. Rates hikes usually trigger capital inflow increase and national currency advance in the mid-term perspective. Still they may trigger economic stagnation and negative impact on the exchange markets in the long-term plan in case rates hikes are not based on high economic growth rates.
Market Importance:
Released:	Released monthly, usually on Thursday 4-10 at 11:00 GMT. BOE minutes are released in 2 weeks after the rates decision announcement, usually on Wednesday.
Source:	The Bank of England

Repo Rate