When the repo rate decreases,the demand for credit also decreases?

Question

When the repo rate decreases,the demand for credit also decreases?

Answer 1

From wikipedia :-

"Repo rate is the rate at which the banks can borrow money from a central bank of the country in order to avoid scarcity of funds"

"It is also a financial & economic tool in the hands of government to control the availability of money supply in the market by altering the repo rate from time to time."

GENERALLY, when anything (eg. money) is 'cheap', people want MORE of it (not less) :-)

So I thus disagree with your statement ...

..  in fact, in UK, over the last 10 years, low interest rates have led to a massive explosion in consumer credit - and especially in house prices & hence mortgage - debt.