India Interest Rate

Last Release

Jun 06, 2025

Actual

5.5

Units In

Frequency

Daily

Next Release

Aug 06, 2025

Time to Release

1 Months 21 Days 3 Hours

Highest	Lowest	Average	Date Range	Source
14.5 Aug 2000	4 May 2020	6.37 %	2000-2025	Reserve Bank of India

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.

Latest Updates

The Reserve Bank of India (RBI) unexpectedly lowered its key repo rate by 50 bps to 5.50% at its May meeting—larger than market expectations of a 25 bps reduction—while shifting its policy stance from accommodative to neutral. The move brought total rate cuts to 100 bps since February, pushing borrowing costs to their lowest level since August 2022. The decision was driven by easing inflation and ongoing uncertainty surrounding global trade tensions. The RBI also reduced the Standing Deposit Facility (SDF) rate by 50 bps to 5.25%, and the Marginal Standing Facility (MSF) rate and the Bank Rate to 5.75%. In addition, the central bank slashed the CRR by 100 bps to 3%, following a 50 bps cut last December, bringing it to the lowest level since April 2021. Regarding the economic outlook, the RBI maintained its GDP growth forecast for FY2025/26 at 6.5%. Meanwhile, inflation projections were revised down to 3.7% from 4.0%, remaining comfortably within the RBI’s 2–6% target range.