If RBI aims to make credit expensive through increase in Repo rate, it will tend to decrease the price of government securities.

Repo rate is the rate at which RBI lends to its clients generally against government securities. Reduction in Repo rate helps the commercial banks to get money at a cheaper rate and increase in Repo rate discourages the commercial banks to get money as the rate increases and becomes expensive.

If central bank increases the Repo rate it is not good news for banks as they have to borrow money at high cost. This compels banks to increase their lending rates as they get money at high rates.