India Interest Rate

Last Release

Feb 08, 2024

Actual

6.5

Units In

6.5

Frequency

Daily

Next Release

Apr 05, 2024

Time to Release

1 Months 25 Days 3 Hours

Highest	Lowest	Average	Date Range	Source
14.5 Aug 2000	4 May 2020	6.38 %	2000-2024	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% for the sixth consecutive meeting in February 2024, as widely expected amid persistent price pressures. The latest move came after annual inflation accelerated to a four-month high of 5.69% in December due to rising food prices but stayed within the RBI's 2-6% target range in the medium term. RBI Governor reaffirmed its commitment to bring down inflation to 4% in a timely and sustainable manner. Additionally, the central bank projected economic growth for the fiscal year 2025 at 7%, with projections of 7.2% for Q1; 6.8% for Q2; 7% for Q3; and 6.9% for Q4, while expected inflation at 4.5%, with projection 5% for Q1; 4.0% for Q2; 4.6% for Q3, and 4.7% for Q4. Meantime, the inflation projection for FY2024 was unchanged at 5.4%, and GDP growth at 7.3%. The RBI also kept both the marginal standing facility (MSF) and bank rates unchanged at 6.75% while holding the standing deposit facility (SDF) rate at 6.25%.