What is Repo rate? Write down the effect of changing Repo rate?

Repo rate is the rate at which the central bank of a country (Reserve Bank of India in case of India) lends money to commercial banks in the event of any shortfall of funds. It is used for controlling inflation of a country.
High Repo rate:
Taking loan from RBI will be costlier.
Effect of High rates will lead to decrease in money supply.
High rate of EMI’s and Loan for retail consumer.
High cost of loan for loanee.
Reduction in inflation rate.

Low repo rate:
More money

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