India Interest Rate

Last Release

Aug 06, 2025

Actual

5.5

Units In

5.5

Frequency

Daily

Next Release

Oct 01, 2025

Time to Release

1 Months 23 Days 7 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) maintained its key repo rate at 5.50% during its August meeting, keeping a neutral stance, following a larger-than-expected 50 bps in June, as widely expected. The rate remains at its lowest level since August 2022. The decision came amid easing inflation and the recent US tariff announcement, which imposed a 25% duty on Indian imports. Regarding the economic outlook, the RBI maintained its GDP growth forecast at 6.5% for FY2025/26 and 6.6% for the following fiscal year. Meanwhile, inflation projections were revised down to 3.1% from 3.7%, remaining well within the RBI’s 2–6% target range. The RBI also held the Standing Deposit Facility (SDF) and the Marginal Standing Facility (MSF) rates steady at 5.25% and 5.75%, respectively. Previously, the central bank cut the Cash Reserve Ratio (CRR) by 100 bps—from 4% to 3%—at its June meeting, implemented in four tranches of 25 basis points each, starting in September 2025.