India Interest Rate

Last Release

Feb 07, 2025

Actual

6.25

Units In

6.5

Frequency

Daily

Next Release

N/A

Time to Release

N/A

Highest	Lowest	Average	Date Range	Source
14.5 Aug 2000	4 May 2020	6.38 %	2000-2025	Reserve Bank of India

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.

Latest Updates

The Reserve Bank of India unanimously lowered its key repo rate by 25 basis points to 6.25% during its February meeting, marking the first reduction since May 2020 and aligning with market consensus. This move brought borrowing costs to their lowest level since January 2023, aiming to counter slowing economic growth amid rising global trade uncertainty. The decision was announced during Governor Sanjay Malhotra's inaugural monetary policy review. Regarding the economic outlook, the central bank expects FY2025-26 GDP growth at 6.7% while maintaining the inflation forecast at 4.2%, with projections of 4.5% for Q1, 4.0% for Q2, and 3.8% for Q3. For the current year, the real GDP is expected to grow at 6.4%, after an 8.2% rise last year. Simultaneously, the RBI also slashed both the standing deposit facility (SDF) rate by 25 bps to 6% and the marginal standing facility (MSF) and bank rates to 6.50%. Meanwhile, the RBI maintained the CRR at 4% after a 50 bps reduction in December.