The Reserve Bank of India maintained its benchmark policy repo at 6.5% for the ninth consecutive meeting in August 2024 to ensure inflation is down towards its 4% medium-term target while supporting growth, aligning with the market expected. The latest move came after annual inflation accelerated to a four-month high of 5.08% in June 2024, boosted by rising food prices but remaining within the RBI's tolerance of the 2-6% target range. Additionally, the central bank kept the economic growth forecast for the fiscal year 2024-25 at 7.2%, with Q1 at 7.1%, slightly down from the earlier projection of 7.3%; 7.2% for Q2; 7.3% for Q3; and 7.2% for Q4 while maintaining inflation expectations at 4.5%, with a projection of 4.4% for Q2 (revised from 3.8%); 4.7% for Q3 (revised from 4.6%); and 4.3% for Q4 (revised from 4.5%). The RBI also left the standing deposit facility (SDF) rate at 6.25% while holding the marginal standing facility (MSF) and bank rates unchanged at 6.75%. source: Reserve Bank of India
The benchmark interest rate in India was last recorded at 6.50 percent. Interest Rate in India averaged 6.37 percent from 2000 until 2024, reaching an all time high of 14.50 percent in August of 2000 and a record low of 4.00 percent in May of 2020. This page provides - India Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. India Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on September of 2024.
The benchmark interest rate in India was last recorded at 6.50 percent. Interest Rate in India is expected to be 6.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the India Interest Rate is projected to trend around 5.50 percent in 2025 and 5.00 percent in 2026, according to our econometric models.
India Interest Rate
In India, interest rate decisions are taken by the Reserve Bank of India's Central Board of Directors. The official interest rate is the benchmark repurchase rate. In 2014, the primary objective of the RBI monetary policy became price stability, giving less importance to government's borrowing, the stability of the rupee exchange rate and the need to protect exports. In February 2015, the government and the central bank agreed to set a consumer inflation target of 4 percent, with a band of plus or minus 2 percentage points, from the financial year ending in March 2017.
| Actual | Previous | Highest | Lowest | Dates | Unit | Frequency | ||
|---|---|---|---|---|---|---|---|---|
| 6.50 | 6.50 | 14.50 | 4.00 | 2000 - 2024 | percent | Daily |
News Stream
India Leaves Rates Steady as Expected
The Reserve Bank of India maintained its benchmark policy repo at 6.5% for the ninth consecutive meeting in August 2024 to ensure inflation is down towards its 4% medium-term target while supporting growth, aligning with the market expected. The latest move came after annual inflation accelerated to a four-month high of 5.08% in June 2024, boosted by rising food prices but remaining within the RBI's tolerance of the 2-6% target range. Additionally, the central bank kept the economic growth forecast for the fiscal year 2024-25 at 7.2%, with Q1 at 7.1%, slightly down from the earlier projection of 7.3%; 7.2% for Q2; 7.3% for Q3; and 7.2% for Q4 while maintaining inflation expectations at 4.5%, with a projection of 4.4% for Q2 (revised from 3.8%); 4.7% for Q3 (revised from 4.6%); and 4.3% for Q4 (revised from 4.5%). The RBI also left the standing deposit facility (SDF) rate at 6.25% while holding the marginal standing facility (MSF) and bank rates unchanged at 6.75%.
2024-08-08
India Holds Rates, Revises Up FY25 GDP Forecast
The Reserve Bank of India kept its benchmark policy repo at 6.5% for the eighth consecutive meeting in June 2024, as widely expected amid persistent price pressures and remaining economy resilient. The latest move came after annual inflation stood at 4.85% in April 2024, almost unchanged from March, staying within the RBI's 2-6% target range in the medium term. RBI Governor Shaktikanta Das said that uncertainties would continue to weigh on the inflation outlook amid ongoing deflation in fuel, but food inflation remained elevated. Additionally, the central bank revised the economic growth forecast for the fiscal year 2025 to 7.2% from 7%, with a projection of 7.2% for Q2; 7.3% for Q3; and 7.2% for Q4, while maintaining inflation expectations at 4.5%, with a projection of 4.9% for Q1; 3.8% for Q2; 4.6% for Q3, and 4.5% for Q4. The RBI also held the marginal standing facility (MSF) and bank rates unchanged at 6.75% while keeping the standing deposit facility (SDF) rate at 6.25%.
2024-06-07
India Leaves Rates Steady as Expected
The Reserve Bank of India held its benchmark policy repo at 6.5% for the seventh consecutive meeting in April 2024, as widely expected amid persistent price pressures. The latest move came after annual inflation stood at 5.09% in February 2024, almost unchanged from January, after hitting a four-month high of 5.69% in December 2023, staying within the RBI's 2-6% target range in the medium term. RBI Governor Shaktikanta Das reaffirmed its commitment to bring down inflation to 4%. He said that uncertainties would continue to weigh on the inflation outlook. Additionally, the central bank maintained the economic growth forecast for the fiscal year 2025 at 7%, with projections of 7.1% for Q1; 6.9% for Q2; and Q3 and Q4 at 7% each, while inflation was at 4.5%, with a projection of 4.9% for Q1; 3.8% for Q2; 4.6% for Q3, and 4.5% for Q4. The RBI also left the marginal standing facility (MSF) and bank rates unchanged at 6.75% while keeping the standing deposit facility (SDF) rate at 6.25%.
2024-04-05
