India Interest Rate

Last Release

Dec 05, 2025

Actual

5.25

Units In

5.5

Frequency

Daily

Next Release

Feb 06, 2026

Time to Release

2 Months 0 Days 7 Hours

Highest	Lowest	Average	Date Range	Source
14.5 Aug 2000	4 May 2020	6.36 %	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) lowered its key repo rate by 25 bps to 5.25% during its December 2025 meeting, in line with forecasts amid confidence in a softer inflation outlook. The RBI has now cut rates by a total of 125 bps since the beginning of the year, bringing the repo rate to its lowest level since July 2022. The central bank also announced open market operations worth INR 1 trillion (USD 11.14 billion) to buy bonds this month, along with an additional USD 5 billion in forex swaps to inject liquidity into the banking system and speed up the transmission of lower rates. On the economic outlook, the RBI raised its GDP growth forecast for FY2025/26 to 7.3%, up from its earlier estimate of 6.8%. Meanwhile, headline inflation was revised down to 2.0% from 2.6%, keeping it well within the central bank’s 2%–6% target range. The RBI also cut the Standing Deposit Facility (SDF) and Marginal Standing Facility (MSF) rates by 25 bps, bringing them to 5.0% and 5.50%, respectively.