What is difference between Current Account and Savings Account
Savings gives interest. Current no interest
Current has overdraft
What is a share
A share or stock is a part of a company. Think of it like a pizza. Each slice is a share.
What is Repo Rate
The Repo Rate (or Key Rate) is the primary interest rate set by the central bank. It acts as a benchmark for the entire economy.
- How it works: It is the interest rate at which the Bank of Mauritius lends money to commercial banks.
- The Ripple Effect: When the central bank changes this rate, commercial banks usually adjust their own interest rates accordingly.
- If the rate goes up: Borrowing becomes more expensive (higher interest on loans and mortgages), which typically helps cool down inflation.
- If the rate goes down: Borrowing becomes cheaper, encouraging businesses and individuals to spend and invest, which stimulates economic growth.