The Reserve Bank of India raised its key repo rate by 50 bps to 5.4% during its August meeting, the third rate hike in a row, surprising markets had forecast a 35 bps rate hike, as policymakers stepped up efforts to bring down inflation which has stayed above the upper end of the central bank's target this year. The decision followed a 50 bps hike in June, bringing the rate to level not seen since September 2019. The central bank maintained its inflation forecast for FY 2023 at 6.7% and its economic growth at 7.2%. The annual inflation eased slightly to 7.01% in June of 2022, amid surging food prices. However, it remained above the RBI’s target range of 2-6% for the sixth straight month. The central bank also raised both the standing deposit facility (SDF) rate and the marginal standing facility (MSF) rate and the bank rate by 50 bps to 5.15% and 5.65%, respectively. source: Reserve Bank of India

Interest Rate in India averaged 6.37 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 August of 2022.

Interest Rate in India is expected to be 5.40 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 6.25 percent in 2023, according to our econometric models.

Ok
Trading Economics members can view, download and compare data from nearly 200 countries, including more than 20 million economic indicators, exchange rates, government bond yields, stock indexes and commodity prices.

The Trading Economics Application Programming Interface (API) provides direct access to our data. It allows API clients to download millions of rows of historical data, to query our real-time economic calendar, subscribe to updates and receive quotes for currencies, commodities, stocks and bonds.

API Features Documentation Interested? Click here to contact us
Please Paste this Code in your Website
width
height
 Preview
India Interest Rate



Calendar GMT Actual Previous Consensus TEForecast
2022-05-04 08:35 AM 4.4% 4%
2022-06-08 04:30 AM 4.9% 4.4% 4.8% 4.8%
2022-08-05 04:30 AM 5.4% 4.9% 5.25% 5.4%


Related Last Previous Unit Reference
Interest Rate 5.40 4.90 percent Aug 2022
Cash Reserve Ratio 4.50 4.50 percent Aug 2022
Interbank Rate 5.61 5.61 percent Aug 2022
Money Supply M1 52980.98 52861.84 INR Billion May 2022
Money Supply M2 55150.14 54622.68 INR Billion Jul 2022
Money Supply M3 209109.47 206623.21 INR Billion Jul 2022
Foreign Exchange Reserves 573880.00 571560.00 USD Million Jul 2022
Central Bank Balance Sheet 29526.81 29639.26 INR Billion Jun 2022
Loan Growth 14.00 14.40 percent Jul 2022
Reverse Repo Rate 3.35 3.35 percent Aug 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
5.40 4.90 14.50 4.00 2000 - 2022 percent Daily

News Stream
RBI Raises Rates by 50 bps to 5.4%
The Reserve Bank of India raised its key repo rate by 50 bps to 5.4% during its August meeting, the third rate hike in a row, surprising markets had forecast a 35 bps rate hike, as policymakers stepped up efforts to bring down inflation which has stayed above the upper end of the central bank's target this year. The decision followed a 50 bps hike in June, bringing the rate to level not seen since September 2019. The central bank maintained its inflation forecast for FY 2023 at 6.7% and its economic growth at 7.2%. The annual inflation eased slightly to 7.01% in June of 2022, amid surging food prices. However, it remained above the RBI’s target range of 2-6% for the sixth straight month. The central bank also raised both the standing deposit facility (SDF) rate and the marginal standing facility (MSF) rate and the bank rate by 50 bps to 5.15% and 5.65%, respectively.
2022-08-05
India Hikes Repo Rate Again, Raises Inflation Forecast
The Reserve Bank of India raised its key repo rate by 50 bps to 4.9% during its June meeting, after May's surprise 40 bps off-cycle hike, surprising markets had forecast a 40 bps rate hike, aiming to ensure inflation remains within target going forward while supporting growth. The board decided to revised upwards its inflation forecast to 6.7 percent for FY 2022-2023 from 5.7 percent. Meanwhile, the central bank maintained its economic growth outlook for FY 2022-2023 at 7.2%. The annual inflation accelerated to 7.79% in April of 2022, the highest since May of 2014, amid surging food prices. The central bank also raised both the standing deposit facility (SDF) rate and the marginal standing facility (MSF) rate and the bank rate by 50 bps to 4.65% and 5.15%, respectively.
2022-06-08
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