The Reserve Bank of India held its benchmark policy repo at 6.5 percent for the third consecutive meeting in August 2023, matching market expectations, as inflation concerns resurfaced following higher-than-usual seasonal spikes in food prices in recent weeks. Policymakers said that the decision remains to align inflation to the RBI’s target range of 4% ± 2% while supporting economic growth. India's annual inflation accelerated for the first time in five months to 4.81% in June from May’s over-two-year low of 4.31%. The RBI also left both the standing deposit facility (SDF) rate and the marginal standing facility (MSF) at 6.25% and 6.75, respectively. The board has raised rates by an aggregate of 250bps starting from May 2022, bringing borrowing costs to a level of January 2019. Additionally, the central bank maintained its growth forecast for the fiscal year 2024 at 6.5% while raising its inflation forecast to 5.4% from 5.1%; 6.2% seen in Q2; 5.7% in Q3, and 5.2% in Q4. source: Reserve Bank of India

Interest Rate in India averaged 6.37 percent from 2000 until 2023, 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 August of 2023.

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 2024 and 5.00 percent in 2025, according to our econometric models.

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India Interest Rate



Calendar GMT Reference Actual Previous Consensus TEForecast
2023-04-06 04:30 AM 6.5% 6.5% 6.75% 6.75%
2023-06-08 04:30 AM 6.5% 6.5% 6.5% 6.5%
2023-08-10 04:30 AM 6.5% 6.5% 6.5% 6.5%
2023-10-06 04:30 AM 6.5% 6.5%


Related Last Previous Unit Reference
Interest Rate 6.50 6.50 percent Aug 2023
Cash Reserve Ratio 4.50 4.50 percent Aug 2023
Interbank Rate 7.20 7.20 percent Aug 2023
Money Supply M1 59021.12 56996.19 INR Billion Jun 2023
Money Supply M2 58330.50 61023.69 INR Billion Jul 2023
Money Supply M3 233302.56 232594.32 INR Billion Aug 2023
Foreign Exchange Reserves 594890.00 601450.00 USD Million Aug 2023
Central Bank Balance Sheet 31035.89 29527.89 INR Billion Jul 2023
Loan Growth 19.70 19.70 percent Aug 2023
Reverse Repo Rate 3.35 3.35 percent Aug 2023

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 - 2023 percent Daily

News Stream
India Keeps Rates Steady as Expected
The Reserve Bank of India held its benchmark policy repo at 6.5 percent for the third consecutive meeting in August 2023, matching market expectations, as inflation concerns resurfaced following higher-than-usual seasonal spikes in food prices in recent weeks. Policymakers said that the decision remains to align inflation to the RBI’s target range of 4% ± 2% while supporting economic growth. India's annual inflation accelerated for the first time in five months to 4.81% in June from May’s over-two-year low of 4.31%. The RBI also left both the standing deposit facility (SDF) rate and the marginal standing facility (MSF) at 6.25% and 6.75, respectively. The board has raised rates by an aggregate of 250bps starting from May 2022, bringing borrowing costs to a level of January 2019. Additionally, the central bank maintained its growth forecast for the fiscal year 2024 at 6.5% while raising its inflation forecast to 5.4% from 5.1%; 6.2% seen in Q2; 5.7% in Q3, and 5.2% in Q4.
2023-08-10
India Holds Rates as Expected
The Reserve Bank of India left its benchmark policy repo at 6.5 percent for the second consecutive meeting in June 2023 to ensure inflation stays within the central bank's 2-6% target range without hampering growth. The latest move was in line with market forecasts amid the easing cost pressures. India's annual inflation eased to an 18-month low of 4.7% in April due to a slowdown in food prices. The RBI also kept both the standing deposit facility (SDF) rate and the marginal standing facility (MSF) at 6.25% and 6.75, respectively. The regulator has lifted rates by an aggregate of 250bps starting from May 2022, bringing borrowing costs to a level of January 2019. Additionally, it maintained its growth forecast for the fiscal year 2024 at 6.5% while cutting its inflation forecast to 5.1% from 5.2%: 4.6% seen in Q1; 5.2% in Q2; 5.4% in Q3, and 5.2% in Q4.
2023-06-08
India Unexpectedly Leaves Rates Unchanged
The Reserve Bank of India unexpectedly kept its benchmark policy repo at 6.5 percent during its April 2023 meeting after delivering six straight hikes, at odds with the market projections of a 25 bps rate increase. The body said it was closely monitoring the impact of recent global financial turbulence. According to the policymakers, their stance remained focused on the withdrawal of accommodation, meaning further tightening was not excluded. The pause in rate hikes was for this meeting only. The RBI has lifted rates by an aggregate of 250bps starting from May 2022, pushing borrowing costs to a level of January 2019. Additionally, the board raised its growth forecast for the fiscal year beginning in April to 6.5% from 6.4% and lowered its inflation forecast to 5.2% from 5.3%.
2023-04-06