India Interest Rate

The benchmark interest rate in India was last recorded at 8 percent. Interest Rate in India is reported by the Reserve Bank of India. Interest Rate in India averaged 6.62 Percent from 2000 until 2014, 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. 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. 2014-04-18

Actual Previous Highest Lowest Forecast Dates Unit Frequency
8.00 8.00 14.50 4.25 7.75 | 2014/06 2000 - 2014 Percent Monthly

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India Interest Rate
LIST BY COUNTRY


CALENDAR GMT Country Event Reference Actual Previous Consensus Forecast
2013-10-29 05:30 AM India
RBI Interest Rate Decision
7.75% 7.50% 7.50% 7.5%
2013-12-18 05:30 AM India
RBI Interest Rate Decision
7.75% 7.75% 8.0% 8%
2014-01-28 05:30 AM India
RBI Interest Rate Decision
8% 7.75% 7.75% 7.75%
2014-04-01 06:30 AM India
RBI Interest Rate Decision
8.0% 8% 8% 8%
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Money Last Previous Highest Lowest Forecast Unit
Central Bank Balance Sheet 3216.80 2014-03-31 3151.90 4025.20 1.71 3383.17 2014-06-30 INR Billions [+]
Foreign Exchange Reserves 16817.80 2014-04-30 16598.20 16817.80 23.86 16798.34 2014-06-30 INR Billion [+]
Interbank Rate 8.94 2014-03-15 9.15 12.97 3.10 8.00 2014-06-30 Percent [+]
Loan Growth 14.70 2014-03-31 14.30 42.00 5.20 14.46 2014-04-30 Percent [+]
Money Supply M1 20402.15 2014-03-31 20113.67 20402.15 80.15 20887.90 2014-06-30 INR Billion [+]
Money Supply M2 20453.55 2014-03-31 20164.07 20453.55 1127.49 20868.54 2014-06-30 INR Billion [+]
Money Supply M3 94554.04 2014-03-31 93489.32 94554.04 123.52 97743.31 2014-06-30 INR Billion [+]
Interest Rate 8.00 2014-03-31 8.00 14.50 4.25 7.75 2014-06-30 Percent [+]
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India Leaves Rates on Hold

In its April 1st, 2014 meeting, Reserve Bank of India decided to leave the policy repo rate unchanged at 8 percent and decided to officially start using consumer price inflation to determine its monetary policy.

The central bank also left the cash reserve ratio unchanged at 4 percent, but decidec to reduce the amount of overnight funding to banks. 

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

The Reserve Bank’s policy stance will be firmly focused on keeping the economy on a disinflationary glide path that is intended to hit 8 per cent CPI inflation by January 2015 and 6 per cent by January 2016. At the current juncture, it is appropriate to hold the policy rate, while allowing the rate increases undertaken during September 2013-January 2014 to work their way through the economy. Furthermore, if inflation continues along the intended glide path, further policy tightening in the near term is not anticipated at this juncture. 

Contingent upon the desired inflation outcome, real GDP growth is projected to pick up from a little below 5 per cent in 2013-14 to a range of 5 to 6 per cent in 2014-15 albeit with downside risks to the central estimate of 5.5 per cent (Chart 2). Lead indicators do not point to any sustained revival in industry and services as yet, and the outlook for the agricultural sector is contingent upon the timely arrival and spread of the monsoon. Easing of domestic supply bottlenecks and progress on the implementation of stalled projects already cleared should brighten up the growth outlook, as would stronger anticipated export growth as the world economy picks up.

Reserve Bank of India | Joana Taborda | joana.taborda@tradingeconomics.com
4/1/2014 10:11:55 AM

RECENT RELEASES

Reserve Bank of India Raises Rates
In its January 2014 meeting, Reserve Bank of India decided to raise the policy repo rate by 25 bps to 8 percent to handle currency pressure and curb persistently high inflation. Published on 2014-01-28

Reserve Bank of India Leaves Policy Rates on Hold
In its December meeting, the Reserve Bank of India kept its rates on hold following two successive 25 basis points hikes. The Bank decided to wait for further data despite high levels of inflation. Published on 2013-12-18


Interest Rate | Notes
The interest rate shown on this page refers to the central bank benchmark interest rate. Usually, the central bank benchmark interest rate is the overnight rate at which central banks make loans to the commercial banks under their jurisdiction. Moving the benchmark interest rate, the central bank is able to make an impact on interest rates of commercial banks, inflation level of the country and national currency exchange rate. Reduction of interest rates should bring increase in business activity, a rise in inflation rate and weakening of national currency. In case of increase in interest rates the level of business activity is likely to drop, inflation declines and national currency strengthens.


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