Reverse repo rate calculation
The repo rate is the annualized interest rate of the transaction: Repo Rate = Dollar Interest/Principal × 360/(Repo Term in days) The repo rate typically ranges from 10 to 200 basis points less than the Fed funds rate . Definition of 'Reverse Repo Rate' Definition: Reverse repo rate is the rate at which the central bank of a country (Reserve Bank of India in case of India) borrows money from commercial banks within the country. It is a monetary policy instrument which can be used to control the money supply in the country.