India Interest Rate 2000-2015 | Data | Chart | Calendar | Forecast | News

The benchmark interest rate in India was last recorded at 7.75 percent. Interest Rate in India averaged 6.68 percent from 2000 until 2015, reaching an all time high of 14.50 percent in August of 2000 and a record low of 4.25 percent in April of 2009. Interest Rate in India is reported by the Reserve Bank of India.

      Forecast    
India Interest Rate


Actual Previous Highest Lowest Dates Unit Frequency
7.75 8.00 14.50 4.25 2000 - 2015 percent Daily
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. This page provides - India Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Content for - India Interest Rate - was last refreshed on Sunday, February 1, 2015.


India Cuts Policy Rate to 7.75%


The Reserve Bank of India cut its benchmark policy repo rate by 25 bps to 7.75 percent in a surprise meeting on January 15th, aiming to boost growth amid slowing inflation. Policymakers also signaled further monetary easing, depending on continuing disinflationary pressures, fiscal consolidation and supply constraints.

Excerpts from the statement by Dr. Raghuram G. Rajan, Governor:

Since July 2014, inflationary pressures (measured by changes in the consumer price index) have been easing. The path of inflation, while below the expected trajectory, has been consistent with the assessment of the balance of risks in the Reserve Bank’s bi-monthly monetary policy statements. To some extent, lower than expected inflation has been enabled by the sharper than expected decline in prices of vegetables and fruits since September, ebbing price pressures in respect of cereals and the large fall in international commodity prices, particularly crude oil. Crude prices, barring geo-political shocks, are expected to remain low over the year. Weak demand conditions have also moderated inflation excluding food and fuel, especially in the reading for December. Finally, the government has reiterated its commitment to adhering to its fiscal deficit target.

These factors have significantly reduced the momentum of inflation, compensating for the widely anticipated ending of favourable base effects. Households’ inflation expectations have adapted, and both near-term and longer-term inflation expectations have eased to single digits for the first time since September 2009. Inflation outcomes have fallen significantly below the 8 per cent targeted by January 2015. On current policy settings, inflation is likely to be below 6 per cent by January 2016.

These developments have provided headroom for a shift in the monetary policy stance. 

Keeping this commitment in mind, it has been decided to:
•reduce the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 8.0 per cent to 7.75 per cent with immediate effect;
•keep the cash reserve ratio (CRR) of scheduled banks unchanged at 4.0 per cent of net demand and time liabilities (NDTL);
continue to provide liquidity under overnight repos at 0.25 per cent of bank-wise NDTL at the LAF repo rate and liquidity under 7-day and 14-day term repos of up to 0.75 per cent of NDTL of the banking system through auctions; and
•continue with daily variable rate repos and reverse repos to smooth liquidity.

Consequently, the reverse repo rate under the LAF stands adjusted to 6.75 per cent, and the marginal standing facility (MSF) rate and the Bank Rate to 8.75 per cent with immediate effect.

The fifth bi-monthly monetary policy statement also stated that once the monetary policy stance shifts, subsequent policy actions will be consistent with this stance. Key to further easing are data that confirm continuing disinflationary pressures. Also critical would be sustained high quality fiscal consolidation as well as steps to overcome supply constraints and assure availability of key inputs such as power, land, minerals and infrastructure. The latter would be needed to ensure that potential output rises above the projected pick-up in growth in coming quarters so as to contain inflation.

RBI | Joana Taborda | joana.taborda@tradingeconomics.com
1/15/2015 8:53:40 AM


Recent Releases

India Leaves Monetary Policy Unchanged
The Reserve Bank of India left the benchmark repo rate on hold at 8 percent on December 2nd, saying a change in monetary policy in current conditions is premature. However, policymakers added that adjustments may occur next year if inflation continues to ease and fiscal developments are encouraging. Published on 2014-12-02

India Keeps Policy Rate at 8%
At its September 30th meeting, the Reserve Bank of India left the repo rate on hold at 8 percent, waiting for more evidence that inflation rate is slowing. Published on 2014-09-30


Calendar GMT Event Actual Previous Consensus Forecast (i)
2014-09-30 06:30 AM
RBI Interest Rate Decision 
8% 8.0% 8.0% 8%
2014-12-02 05:30 AM
Interest Rate Decision 
8.0% 8.0% 8.0% 8.0%
2015-01-15 03:00 AM
RBI Interest Rate Decision 
7.75% 8.0%
2015-02-03 05:30 AM
RBI Interest Rate Decision 
7.75% 7.75% 7.75%
2015-04-01 06:30 AM
RBI Interest Rate Decision 
7.5%
2015-06-03 06:30 AM
RBI Interest Rate Decision 
7.5%


India Money Last Previous Highest Lowest Unit
Interest Rate 7.75 8.00 14.50 4.25 percent [+]
Interbank Rate 8.31 8.27 12.97 3.10 percent [+]
Money Supply M1 21850.00 21757.53 21850.00 80.15 INR Billion [+]
Money Supply M2 22208.27 22077.04 22208.27 1127.49 INR Billion [+]
Money Supply M3 103466.39 101950.04 103466.39 123.52 INR Billion [+]
Central Bank Balance Sheet 12760.50 12347.21 13289.32 1624.31 INR Billions [+]
Foreign Exchange Reserves 322037.00 319710.00 383643.00 29048.00 USD Million [+]
Loan Growth 10.88 11.60 42.00 5.20 percent [+]


Interest Rate Reference Previous Highest Lowest Unit
Australia 2.50 Dec/14 2.50 17.50 2.50 percent [+]
Brazil 12.25 Jan/15 11.75 45.00 7.25 percent [+]
Canada 0.75 Jan/15 1.00 16.00 0.25 percent [+]
China 5.60 Dec/14 5.60 10.98 5.31 percent [+]
Euro Area 0.05 Jan/15 0.05 4.75 0.05 percent [+]
France 0.05 Jan/15 0.05 4.75 0.05 percent [+]
Germany 0.05 Jan/15 0.05 4.75 0.05 percent [+]
India 7.75 Jan/15 8.00 14.50 4.25 percent [+]
Indonesia 7.75 Jan/15 7.75 12.75 5.75 percent [+]
Italy 0.05 Jan/15 0.05 4.75 0.05 percent [+]
Japan 0.00 Jan/15 0.00 9.00 0.00 percent [+]
Mexico 3.00 Jan/15 3.00 9.25 3.00 percent [+]
Netherlands 0.05 Jan/15 0.05 4.75 0.05 percent [+]
Russia 15.00 Jan/15 17.00 17.00 5.00 percent [+]
South Korea 2.00 Jan/15 2.00 5.25 2.00 percent [+]
Spain 0.05 Jan/15 0.05 4.75 0.05 percent [+]
Switzerland -0.75 Jan/15 -0.25 3.50 -0.75 percent [+]
Turkey 7.75 Jan/15 8.25 500.00 4.50 percent [+]
United Kingdom 0.50 Aug/15 0.50 17.00 0.50 percent [+]
United States 0.25 Jan/15 0.25 20.00 0.25 percent [+]