Several key factors influence changes in the repo rate, including: Inflation: Central banks often adjust the repo rate to control inflation. High inflation may prompt an increase in the repo rate to reduce money supply, while low inflation may lead to a decrease to stimulate economic activity. Economic Growth: To boost economic growth, central banks may lower the repo rate, making borrowing cheaper. Conversely, if the economy is overheating, the rate may be increased to cool down excessive growth. Monetary Policy: Central banks use the repo rate as a tool to implement their monetary policy, aiming to achieve targets like stable prices and full employment. Global Economic Conditions: Changes in the global economy, such as financial crises or shifts in trade policies, can also influence repo rate decisions.