# 3ABCDEFGHIJKLMNOPQRSTUVWYZ

Repo Rate

The repo rate is the interest rate in a repurchase agreement in which an asset is sold by one party to another in return for collateral. The asset is later repurchased by the borrower at a slightly higher price on a specified date to redeem the loan. The premium in the price of the asset in the second transaction, expressed as an annualised percentage rate, is the repo rate.