The Reserve Bank of India unexpectedly held its benchmark repo rate at 5.15 percent during its December 2019 meeting, after five consecutive rate cuts and surprising markets that expected a 25bps cut amid a sharp economic slowdown. The central bank revised its growth forecasts to 5 percent from 6.1 percent for the current fiscal year that ends in March 2020. Inflation is seen higher at 5.1 percent-4.7 percent in the second half of the current fiscal year, mainly due to prices of vegetables, milk, pulses, and sugar. Yet, policymakers said they will continue with the accommodative stance as long as it is necessary to revive growth, while ensuring that inflation remains within the target.

Interest Rate in India averaged 6.63 percent from 2000 until 2019, 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. This page provides - India Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. source: Reserve Bank of India

Interest Rate in India is expected to be 5.15 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in India to stand at 4.50 in 12 months time. In the long-term, the India Interest Rate is projected to trend around 3.75 percent in 2020, according to our econometric models.

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India Interest Rate

Actual Previous Highest Lowest Dates Unit Frequency
5.15 5.15 14.50 4.25 2000 - 2019 percent Daily

Calendar GMT Actual Previous Consensus TEForecast
2019-06-06 06:15 AM 5.75% 6% 5.75% 5.75%
2019-08-07 06:15 AM 5.40% 5.75% 5.5% 5.5%
2019-10-04 06:15 AM 5.15% 5.40% 5.15% 5.20%
2019-12-05 06:15 AM 5.15% 5.15% 4.9% 4.9%
2020-02-06 06:15 AM 5.15% 5.15% 5.15%

News Stream
RBI Cuts Key Lending Rate, Slashes Growth Forecasts
The Reserve Bank of India lowered its benchmark repo rate by 25 bps to 5.15 percent during its October meeting, as widely expected. This was the fifth straight rate cut so far this year, in an attempt to boost slowing economic growth. Also, the RBI lowered its GDP forecast to 6.1 percent for 2019/20 from 6.9 percent previously estimated; while inflation outlook was revised upwards to 3.4 percent from 3.1 percent.

RBI Cuts Interest Rates by 35bps
The Reserve Bank of India lowered its benchmark repo rate by 35 bps to 5.40 percent during its August meeting, while markets had forecast a smaller 25bps cut. This was the fourth straight rate cut so far this year, in an attempt to boost economic growth while the inflation outlook remains benign. Also, the RBI lowered its growth forecast to 6.9 percent for 2019/20 from 7.0 percent previously estimated; and inflation was projected at 3.4-3.7 percent for the second half of fiscal 2019-20.

RBI Cuts Key Rate to 5.75%
The Reserve Bank of India lowered its policy interest rate by 25bps to 5.75 percent during its June meeting and changed its monetary policy stance to "accommodative" from "neutral". It was the third straight interest rate cut so far this year, as policymakers voiced concerns about the sharp slowdown in investment activity along with a continuing moderation in private consumption growth. The economy grew by 5.8 percent in the fourth quarter of 2018-19 fiscal year, the slowest pace in more than four years. Also, the RBI lowered its growth forecast to 7 percent for 2019/20 from 7.2 percent previously estimated; and raised its retail inflation outlook for the first half of fiscal 2019-20 to a range of 3 percent to 3.1 percent from a range of 2.9 percent to 3 percent.

India Cuts Key Rate to 6%
The Reserve Bank of India lowered its benchmark interest rate by 25bps to 6.0 percent on April 4th, as widely expected. It is the second rate cut so far this year. Policymakers said that the decision is consistent with the objective of achieving the medium-term target of 4 percent (+/- 2 percent) while supporting growth. The Committee noted that the output gap remains negative and the domestic economy is facing headwinds. The reverse repo rate was also lowered by 25bps to 5.75 percent and the marginal standing facility rate and the Bank Rate to 6.25 percent.

India Unexpectedly Cuts Key Policy Rate to 6.25%
The Reserve Bank of India lowered unexpectedly its benchmark interest rate by 25bps to 6.25 percent on February 7th and shifted its stance to "neutral" in an attempt to boost a slowing economy as inflation rate remains well below its mid-point target of 4 percent. The central bank also released its bi-monthly review of the economy, where it forecast India's economy will expand 7.4 percent in 2019-20, up from 7.2 percent in this fiscal year.

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.

India Money Last Previous Highest Lowest Unit
Interest Rate 5.15 5.15 14.50 4.25 percent [+]
Cash Reserve Ratio 4.00 4.00 10.50 4.00 percent [+]
Money Supply M1 36527.60 36705.98 37218.10 80.15 INR Billion [+]
Interbank Rate 5.14 5.05 12.97 3.10 percent [+]
Money Supply M2 38580.30 37911.49 38580.30 1127.49 INR Billion [+]
Money Supply M3 162664.09 161646.19 162664.09 123.52 INR Billion [+]
Foreign Exchange Reserves 462157.00 461210.00 462157.00 29048.00 USD Million [+]
Central Bank Balance Sheet 20581.39 20321.00 23419.03 1624.31 INR Billions [+]
Loan Growth 7.60 7.10 18.70 4.10 percent [+]
Reverse Repo Rate 4.90 4.90 13.50 3.25 percent [+]