India Interest Rate  2000-2017 | Data | Chart | Calendar | Forecast | News

The Reserve Bank of India held its benchmark repo rate at a six-year low of 6.25 percent on April 6th, as widely expected, and raised its reverse repo rate by 25bps to 6 percent, saying there are upside risks to the inflation outlook amid an uncertain global economic environment. Annual inflation rose to 3.65 percent in February 2017 from a record low of 3.17 percent in the previous month. For 2017-18, policymakers expect inflation to average 4.5 percent in the first half of the year and 5 percent in the second half. Interest Rate in India averaged 6.69 percent from 2000 until 2017, reaching an all time high of 14.50 percent in August of 2000 and a record low of 4.25 percent in April of 2009.

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Calendar GMT Reference Actual Previous Consensus Forecast (i)
2016-12-07 09:00 AM RBI Interest Rate Decision 6.25% 6.25% 6% 6%
2017-02-08 09:00 AM RBI Interest Rate Decision 6.25% 6.25% 6% 6%
2017-04-06 09:00 AM RBI Interest Rate Decision 6.25% 6.25% 6.25% 6.25%
2017-06-07 09:00 AM RBI Interest Rate Decision 6.25%
2017-08-02 09:00 AM RBI Interest Rate Decision
2017-10-04 09:00 AM RBI Interest Rate Decision




India Holds Repo Rate At 6.25%


The Reserve Bank of India held its benchmark repo rate at a six-year low of 6.25 percent on April 6th, as widely expected, and raised its reverse repo rate by 25bps to 6 percent, saying there are upside risks to the inflation outlook amid an uncertain global economic environment. Annual inflation rose to 3.65 percent in February 2017 from a record low of 3.17 percent in the previous month. For 2017-18, policymakers expect inflation to average 4.5 percent in the first half of the year and 5 percent in the second half.

Excerpts from RBI Press Release:

Since the February bi-monthly monetary policy statement, inflation has been quiescent. Headline CPI inflation is set to undershoot the target of 5.0 percent for Q4 of 2016-17 in view of the sub-4 percent readings for January and February. For 2017-18, inflation is projected to average 4.5 percent in the first half of the year and 5 percent in the second half.

Risks are evenly balanced around the inflation trajectory at the current juncture. There are upside risks to the baseline projection. The main one stems from the uncertainty surrounding the outcome of the south west monsoon in view of the rising probability of an El Niño event around July-August, and its implications for food inflation. Proactive supply management will play a critical role in staving off pressures on headline inflation. A prominent risk could emanate from managing the implementation of the allowances recommended by the 7th CPC. In case the increase in house rent allowance as recommended by the 7th CPC is awarded, it will push up the baseline trajectory by an estimated 100-150 basis points over a period of 12-18 months, with this initial statistical impact on the CPI followed up by second-order effects. Another upside risk arises from the one-off effects of the GST. The general government deficit, which is high by international comparison, poses yet another risk for the path of inflation, which is likely to be exacerbated by farm loan waivers. Recent global developments entail a reflation risk which may lift commodity prices further and pass through into domestic inflation. Moreover, geopolitical risks may induce global financial market volatility with attendant spillovers. On the downside, international crude prices have been easing recently and their pass-through to domestic prices of petroleum products should alleviate pressure on headline inflation. Also, stepped-up procurement operations in the wake of the record production of foodgrains will rebuild buffer stocks and mitigate food price stress, if it materialises.

GVA growth is projected to strengthen to 7.4 percent in 2017-18 from 6.7 percent in 2016-17, with risks evenly balanced. Several favourable domestic factors are expected to drive this acceleration. First, the pace of remonetisation will continue to trigger a rebound in discretionary consumer spending. Second, significant improvement in transmission of past policy rate reductions into banks’ lending rates post demonetisation should help encourage both consumption and investment demand of healthy corporations. Third, various proposals in the Union Budget should stimulate capital expenditure, rural demand, and social and physical infrastructure all of which would invigorate economic activity. Fourth, the imminent materialisation of structural reforms in the form of the roll-out of the GST, the institution of the Insolvency and Bankruptcy Code, and the abolition of the Foreign Investment Promotion Board will boost investor confidence and bring in efficiency gains. Fifth, the upsurge in initial public offerings in the primary capital market augurs well for investment and growth.

The global environment is improving, with global output and trade projected by multilateral agencies to gather momentum in 2017. Accordingly, external demand should support domestic growth. Downside risks to the projected growth path stem from the outturn of the south west monsoon; ebbing consumer optimism on the outlook for income, the general economic situation and employment as polled in the March 2017 round of the Reserve Bank’s consumer confidence survey; and, commodity prices, other than crude, hardening further.

RBI l Joana Ferreira | joana.ferreira@tradingeconomics.com
4/6/2017 9:35:02 AM



India Money Last Previous Highest Lowest Unit
Interest Rate 6.25 6.25 14.50 4.25 percent [+]
Cash Reserve Ratio 4.00 4.00 10.50 4.00 percent [+]
Interbank Rate 6.27 6.27 12.97 3.10 percent [+]
Money Supply M1 26954.30 22590.30 28420.20 80.15 INR Billion [+]
Money Supply M2 26537.73 24161.72 29134.50 1127.49 INR Billion [+]
Money Supply M3 128026.16 126828.63 128026.16 123.52 INR Billion [+]
Central Bank Balance Sheet 17752.83 18800.61 23419.03 1624.31 INR Billions [+]
Foreign Exchange Reserves 379310.00 375270.00 383643.00 29048.00 USD Million [+]
Loan Growth 5.60 4.30 18.70 4.10 percent [+]
Reverse Repo Rate 6.00 6.00 13.50 3.25 percent [+]


India Interest Rate Notes

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. This page provides - India Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. India Interest Rate - actual data, historical chart and calendar of releases - was last updated on May of 2017.

Actual Previous Highest Lowest Dates Unit Frequency
6.25 6.25 14.50 4.25 2000 - 2017 percent Daily



interest rate by Country

Last
Brazil 11.25 Apr/17
Russia 9.25 Apr/17
Turkey 8.00 Apr/17
Mexico 6.75 May/17
India 6.25 Apr/17
Indonesia 4.75 May/17
China 4.35 Apr/17
Australia 1.50 May/17
South Korea 1.25 May/17
United States 1.00 May/17
Canada 0.50 May/17
United Kingdom 0.25 May/17
Euro Area 0.00 May/17
France 0.00 May/17
Germany 0.00 May/17
Italy 0.00 May/17
Netherlands 0.00 May/17
Spain 0.00 May/17
Japan -0.10 Apr/17
Switzerland -0.75 May/17