India Interest Rate

Last Release

Aug 10, 2023

Actual

6.5

Units In

6.5

Frequency

Daily

Next Release

N/A

Time to Release

N/A

Highest	Lowest	Average	Date Range	Source
14.5 Aug 2000	4 May 2020	6.37 %	2000-2023	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 held its benchmark policy repo at 6.5 percent for the third consecutive meeting in August 2023, matching market expectations, as inflation concerns resurfaced following higher-than-usual seasonal spikes in food prices in recent weeks. Policymakers said that the decision remains to align inflation to the RBI’s target range of 4% ± 2% while supporting economic growth. India's annual inflation accelerated for the first time in five months to 4.81% in June from May’s over-two-year low of 4.31%. The RBI also left both the standing deposit facility (SDF) rate and the marginal standing facility (MSF) at 6.25% and 6.75, respectively. The board has raised rates by an aggregate of 250bps starting from May 2022, bringing borrowing costs to a level of January 2019. Additionally, the central bank maintained its growth forecast for the fiscal year 2024 at 6.5% while raising its inflation forecast to 5.4% from 5.1%; 6.2% seen in Q2; 5.7% in Q3, and 5.2% in Q4.