India Interest Rate

Last Release

Oct 09, 2024

Actual

6.5

Units In

6.5

Frequency

Daily

Next Release

Dec 06, 2024

Time to Release

1 Months 25 Days 5 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) kept its benchmark policy repo rate at 6.5% for the tenth consecutive meeting in October 2024, aligning with market expectations but tweaked its policy stance to neutral, opening the door for rate cuts amid early signs of a growth slowdown in the economy. This decision came after annual inflation slightly accelerated to 3.65% in August 2024, driven by rising food prices, though it remained below the RBI's target of 4% in five years. Additionally, the central bank maintained its economic growth forecast for the fiscal year 2024-25 at 7.2%, with estimates of 7.0% for Q2, 7.4% for Q3, 7.4% for Q4, and 7.3% for Q1 of FY 2025-26. The RBI also kept its inflation expectations at 4.5%, with projections of 4.1% for Q2; 4.8% for Q3; 4.2% for Q4, and 4.3% for Q1 of FY 2025-26. Moreover, the RBI held the standing deposit facility (SDF) rate at 6.25% while keeping the marginal standing facility (MSF) and bank rates unchanged at 6.75%.