The Reserve Bank of India unexpectedly raised its key repo rate by 40bps to 4.4% during an off cycle meeting on May 4th 2022. It is the first rate hike since 2018 as persistent inflation pressures are becoming more acute and there is a risk that inflation remains elevated for too long. The inflation rate in India increased to 6.95% in March, staying above the 2% to 6% tolerance limit of the central bank for a third month in a row and the April reading is also expected to be elevated. Policymakers pledged to remain accommodative while focusing on withdrawal of accommodation to ensure that inflation remains within the target going forward, while supporting growth. The central bank also raised the cash reserve ratio by 50bps to 4.5%. source: Reserve Bank of India

Interest Rate in India averaged 6.38 percent from 2000 until 2022, reaching an all time high of 14.50 percent in August of 2000 and a record low of 4 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 May of 2022.

Interest Rate in India is expected to be 4.50 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 2023, according to our econometric models.

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India Interest Rate



Calendar GMT Actual Previous Consensus TEForecast
2022-02-10 04:30 AM 4% 4% 4% 4%
2022-04-08 04:30 AM 4% 4% 4% 4%
2022-05-04 08:35 AM 4.4% 4%
2022-06-08 04:30 AM 4.4% 4.5%


Related Last Previous Unit Reference
Interest Rate 4.40 4.00 percent May 2022
Cash Reserve Ratio 4.00 4.00 percent May 2022
Interbank Rate 4.74 4.74 percent May 2022
Money Supply M1 53029.93 51383.74 INR Billion Mar 2022
Money Supply M2 54717.61 52856.60 INR Billion Apr 2022
Money Supply M3 208092.04 208171.19 INR Billion May 2022
Foreign Exchange Reserves 593280.00 595950.00 USD Million May 2022
Central Bank Balance Sheet 28921.88 31538.28 INR Billion Apr 2022
Loan Growth 11.90 11.10 percent May 2022
Reverse Repo Rate 3.35 3.35 percent May 2022

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
4.40 4.00 14.50 4.00 2000 - 2022 percent Daily

News Stream
India Unexpectedly Hikes Key Rate to 4.4%
The Reserve Bank of India unexpectedly raised its key repo rate by 40bps to 4.4% during an off cycle meeting on May 4th 2022. It is the first rate hike since 2018 as persistent inflation pressures are becoming more acute and there is a risk that inflation remains elevated for too long. The inflation rate in India increased to 6.95% in March, staying above the 2% to 6% tolerance limit of the central bank for a third month in a row and the April reading is also expected to be elevated. Policymakers pledged to remain accommodative while focusing on withdrawal of accommodation to ensure that inflation remains within the target going forward, while supporting growth. The central bank also raised the cash reserve ratio by 50bps to 4.5%.
2022-05-04
India Leaves Rates Steady as Expected
The Reserve Bank of India kept its benchmark repo rate at a record low of 4 percent during its April meeting, as widely expected, saying it was maintaining an accommodative monetary policy stance to support economic growth, amid inflationary pressure and escalating geopolitical tensions. The reverse repo rate was also kept unchanged at 3.35%. However, policymakers also mentioned they would restore the width of the liquidity adjustment facility to 50 basis points, which is seen as a first step to move away from the ultra-loose monetary policy embraced during the COVID-19 pandemic. The board decided to revised upwards its inflation forecast to 5.7 percent for FY 2022-2023 from 5.3 percent, amid surging commodity prices. Meanwhile, the GDP growth for FY 2022-2023 is seen at 7.2 percent, compared with 7.8 percent previously estimated.
2022-04-08
India Leaves Rates Steady as Expected
The Reserve Bank of India left its benchmark repo rate at 4 percent during its February meeting, saying it was maintaining an accommodative monetary policy stance as long as necessary to support the economic recovery and to help mitigate the negative impact of COVID-19, while ensuring that inflation remains within the target going forward. The bank also held the reverse repo rate, the borrowing rate, unchanged at 3.35 percent. The central bank had last revised the policy rate on May 22, 2020 by cutting interest rate to a record low. Policymakers expect inflation to average 5.3 percent in FY 2021-2022 and 4.5 percent in FY 2022-2023. Meanwhile, the real GDP growth is projected at 7.8 percent for FY 2022-2023.
2022-02-10