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

The Reserve Bank of India kept its benchmark interest rate steady at 6 percent on October 4th 2017, following a 25bps cut in August and in line with market expectations. Policymakers said the decision is consistent with a neutral stance of monetary policy aiming to reach the medium-term target for inflation of 4 percent +/- 2 percent, while supporting growth. The central bank also increased its inflation forecasts for October-March to a range of 4.2 percent to 4.6 percent while the gross value added projection was cut to 6.7 percent from 7.3 percent. Interest Rate in India averaged 6.68 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.

India Interest Rate
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India Leaves Key Rate at 7-Year Low of 6%


The Reserve Bank of India kept its benchmark interest rate steady at 6 percent on October 4th 2017, following a 25bps cut in August and in line with market expectations. Policymakers said the decision is consistent with a neutral stance of monetary policy aiming to reach the medium-term target for inflation of 4 percent +/- 2 percent, while supporting growth. The central bank also increased its inflation forecasts for October-March to a range of 4.2 percent to 4.6 percent while the gross value added projection was cut to 6.7 percent from 7.3 percent.

The reverse repo rate was also left on hold at 5.75 percent and the marginal standing facility rate and the Bank Rate at 6.25 percent.

Excerpts from the RBI Press Release:

In August, headline inflation was projected at 3 percent in Q2 and 4.0-4.5 per cent in the second half of 2017-18. Actual inflation outcomes so far have been broadly in line with projections, though the extent of the rise in inflation excluding food and fuel has been somewhat higher than expected. The inflation path for the rest of 2017-18 is expected to be shaped by several factors. First, the assessment of food prices going forward is largely favourable, though the first advance estimates of kharif production pose some uncertainty. Early indicators show that prices of pulses which had declined significantly to undershoot trend levels in recent months, have now begun to stabilise. Second, some price revisions pending the goods and services tax (GST) implementation have been taking place. Third, there has been a broad-based increase in CPI inflation excluding food and fuel. Finally, international crude prices, which had started rising from early July, have firmed up further in September. Taking into account these factors, inflation is expected to rise from its current level and range between 4.2-4.6 per cent in the second half of this year, including the house rent allowance by the Centre.

As noted in the August policy, there are factors that continue to impart upside risks to this baseline inflation trajectory: (a) implementation of farm loan waivers by States may result in possible fiscal slippages and undermine the quality of public spending, thereby exerting pressure on prices; and (b) States’ implementation of the salary and allowances award is not yet considered in the baseline projection; an increase by States similar to that by the Centre could push up headline inflation by about 100 basis points above the baseline over 18-24 months, a statistical effect that could have potential second round effects. However, adequate food stocks and effective supply management by the Government may keep food inflation more benign than assumed in the baseline.

Turning to growth projections, the loss of momentum in Q1 of 2017-18 and the first advance estimates of kharif foodgrains production are early setbacks that impart a downside to the outlook. The implementation of the GST so far also appears to have had an adverse impact, rendering prospects for the manufacturing sector uncertain in the short term. This may further delay the revival of investment activity, which is already hampered by stressed balance sheets of banks and corporates. Consumer confidence and overall business assessment of the manufacturing and services sectors surveyed by the Reserve Bank weakened in Q2 of 2017-18; on the positive side, firms expect a significant improvement in business sentiment in Q3. Taking into account the above factors, the projection of real GVA growth for 2017-18 has been revised down to 6.7 per cent from the August 2017 projection of 7.3 per cent, with risks evenly balanced.

RBI | Joana Taborda | joana.taborda@tradingeconomics.com
10/4/2017 9:55:34 AM



Calendar GMT Actual Previous Consensus TEForecast
2017-06-07 09:00 AM RBI Interest Rate Decision 6.25% 6.25% 6.25% 6.25%
2017-08-02 09:00 AM RBI Interest Rate Decision 6% 6.25% 6% 6%
2017-10-04 09:00 AM RBI Interest Rate Decision 6% 6% 6% 6%
2017-12-06 09:00 AM RBI Interest Rate Decision 6% 6%


India Money Last Previous Highest Lowest Unit
Interest Rate 6.00 6.00 14.50 4.25 percent [+]
Cash Reserve Ratio 4.00 4.00 10.50 4.00 percent [+]
Interbank Rate 6.07 6.07 12.97 3.10 percent [+]
Money Supply M1 27364.00 26777.10 28420.20 80.15 INR Billion [+]
Money Supply M2 28225.84 28286.73 29134.50 1127.49 INR Billion [+]
Money Supply M3 129912.80 129968.91 129968.91 123.52 INR Billion [+]
Central Bank Balance Sheet 17933.30 17271.50 23419.03 1624.31 INR Billions [+]
Foreign Exchange Reserves 400297.00 398795.00 402510.00 29048.00 USD Million [+]
Loan Growth 6.90 6.80 18.70 4.10 percent [+]
Reverse Repo Rate 5.75 5.75 13.50 3.25 percent [+]


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. 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 October of 2017.

Actual Previous Highest Lowest Dates Unit Frequency
6.00 6.00 14.50 4.25 2000 - 2017 percent Daily




interest rate by Country

Last
Russia 8.50 Sep/17
Brazil 8.25 Sep/17
Turkey 8.00 Sep/17
Mexico 7.00 Sep/17
India 6.00 Oct/17
China 4.35 Sep/17
Indonesia 4.25 Oct/17
Australia 1.50 Oct/17
South Korea 1.25 Oct/17
United States 1.25 Sep/17
Canada 1.00 Sep/17
United Kingdom 0.25 Sep/17
Euro Area 0.00 Sep/17
France 0.00 Sep/17
Germany 0.00 Sep/17
Italy 0.00 Sep/17
Netherlands 0.00 Sep/17
Spain 0.00 Sep/17
Japan -0.10 Sep/17
Switzerland -0.75 Sep/17