India Interest Rate

Last Release

Dec 06, 2024

Actual

6.5

Units In

6.5

Frequency

Daily

Next Release

Feb 07, 2025

Time to Release

2 Months 0 Days 10 Hours

Highest	Lowest	Average	Date Range	Source
14.5 Aug 2000	4 May 2020	6.38 %	2000-2024	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 (RBI) maintained its key repo rate at 6.5% for the 11th consecutive meeting in December, aligning with market expectations while continuing a neutral policy stance amid a recent slowdown in economic growth. Simultaneously, the central bank cut the Cash Reserve Ratio (CRR) by 50bps to 4%, marking the first such reduction since April 2020, aimed at boosting liquidity, ahead of advance tax outflows. The RBI also introduced the Secured Overnight Rupee Rate (SORR) to further promote the interest rate derivatives market and enhance the credibility of interest rate benchmarks, based on all secured money market transactions. Regarding economic outlook, the GDP is projected to reach 6.6% for FY 2025, down from the prior estimate of 7.2%. Meanwhile, inflation is expected to hit 4.8%, higher than earlier forecasts of 4.5%. Friday's meeting could be the final event for Governor Shaktikanta Das, as his term ends later this month.