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

The benchmark interest rate in India was last recorded at 7.25 percent. Interest Rate in India averaged 6.70 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.

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India Interest Rate
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Actual Previous Highest Lowest Dates Unit Frequency
7.25 7.50 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. 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. 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 Thursday, July 30, 2015.

Calendar GMT Reference Actual Previous Consensus Forecast (i)
2015-03-04 03:00 AM 7.5% 7.75%
2015-04-07 06:30 AM 7.5% 7.5% 7.5% 7.5%
2015-06-02 06:30 AM 7.25% 7.5% 7.25% 7.25%
2015-08-04 06:30 AM 7.25% 7.25% 7.25%


India Cuts Repo Rate for a Third Time This Year


The Reserve Bank of India cut its benchmark policy rate by 25 bps to 7.25 percent as expected during the June 2nd meeting saying that the move is a more appropriate given low capacity utilization, mixed indicators of recovery, and subdued investment and credit growth.

Policymakers also decided to lower the reverse repo rate by a quarter point to 6.25 percent and cut the bank rate to 8.25 percent. The cash reserve ratio was left unchanged at 4.0 percent. 

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

Domestic economic activity remains moderate in Q1 of 2015-16. Agricultural activity was adversely affected by unseasonal rains and hailstorms in north India during March 2015, posing an upside risk to food inflation.

Banks have started passing through some of the past rate cuts into their lending rates, headline inflation has evolved along the projected path, the impact of unseasonal rains has been moderate so far, administered price increases remain muted, and the timing of normalisation of US monetary policy seems to have been pushed back. With low domestic capacity utilization, still mixed indicators of recovery, and subdued investment and credit growth, there is a case for a cut in the policy rate today.

Yet, of the risks to inflation identified in April, three still cloud the picture. First, some forecasters, notably the IMD, predict a below-normal southwest monsoon. Astute food management is needed to mitigate possible inflationary effects. Second, crude prices have been firming amidst considerable volatility, and geo-political risks are ever present. Third, volatility in the external environment could impact inflation. Therefore, a conservative strategy would be to wait, especially for more certainty on both the monsoon outturn as well as the effects of government responses if it turns out to be weak. With still weak investment and the need to reduce supply constraints over the medium term to stay on the proposed disinflationary path (to 4 per cent in early 2018), however, a more appropriate stance is to front-load a rate cut today and then wait for data that clarify uncertainty. Meanwhile banks should pass through the sequence of rate cuts into lending rates.

Assuming reasonable food management, inflation is expected to be pulled down by base effects till August but to start rising thereafter to about 6.0 per cent by January 2016 – slightly higher than the projections in April. Putting more weight on the IMD’s monsoon projections than the more optimistic projections of private forecasters as well as accounting for the possible inflationary effects of the increases in the service tax rate to 14 percent, the risks to the central trajectory are tilted to the upside.

Reflecting the balance of risks and the downward revision to GVA estimates for 2014-15, the projection for output growth for 2015-16 has been marked down from 7.8 per cent in April to 7.6 per cent with a downward bias to reflect the uncertainties surrounding these various risks.

Strong food policy and management will be important to help keep inflation and inflationary expectations contained over the near term. Furthermore, monetary easing can only create the enabling conditions for a fuller government policy thrust that hinges around a step up in public investment in several areas that can also crowd in private investment.

 


RBI Rida Husna l rida@tradingeconomics.com
6/2/2015 7:42:44 AM


Recent Releases

RBI Holds Policy Rate Unchanged
The Reserve Bank of India left its benchmark repo rate on hold at 7.5 percent in April, following a surprise rate cut last month. Policymakers said will allow the disinflationary momentum to spread through the economy while waiting for commercial banks to cut lending rates.
Published on 2015-04-07

RBI Cuts Repo Rate to 7.5%
The Reserve Bank of India cut its benchmark policy repo rate by 25 bps to 7.5 percent in a surprise meeting on March 4th. It is the second rate cut this year, citing slowing inflation, weak growth and important government reforms.
Published on 2015-03-04

India Holds Policy Rate Unchanged
The Reserve Bank of India left its benchmark repo rate at 7.75 percent, as policymakers waited for more evidence of last month's rate cut and indicated that the key to further easing are continuing disinflationary pressures and sustained fiscal consolidation.
Published on 2015-02-03

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.
Published on 2015-01-15


India Money Last Previous Highest Lowest Unit
Interest Rate 7.25 7.50 14.50 4.25 percent [+]
Interbank Rate 7.52 7.52 12.97 3.10 percent [+]
Money Supply M1 23629.21 23721.18 24237.40 80.15 INR Billion [+]
Money Supply M2 24096.18 24185.45 24701.67 1127.49 INR Billion [+]
Money Supply M3 109479.37 108312.01 109479.37 123.52 INR Billion [+]
Central Bank Balance Sheet 13911.52 13831.66 13955.84 1624.31 INR Billions [+]
Foreign Exchange Reserves 353330.00 354360.00 383643.00 29048.00 USD Million [+]
Loan Growth 9.40 9.30 18.70 9.30 percent [+]
Cash Reserve Ratio 4.00 4.00 10.50 4.00 percent [+]


Interest Rate Reference Previous Highest Lowest Unit
Australia 2.00 Jul/15 2.00 17.50 2.00 percent [+]
Brazil 14.25 Jul/15 13.75 45.00 7.25 percent [+]
Canada 0.50 Jul/15 0.75 16.00 0.25 percent [+]
China 4.85 Jun/15 5.10 10.98 4.85 percent [+]
Euro Area 0.05 Jul/15 0.05 4.75 0.05 percent [+]
India 7.25 Jun/15 7.50 14.50 4.25 percent [+]
Indonesia 7.50 Jul/15 7.50 12.75 5.75 percent [+]
Japan 0.00 Jul/15 0.00 9.00 0.00 percent [+]
Mexico 3.00 Jun/15 3.00 9.25 3.00 percent [+]
Russia 11.50 Jun/15 12.50 17.00 5.00 percent [+]
South Korea 1.50 Jul/15 1.50 5.25 1.50 percent [+]
Switzerland -0.75 Jun/15 -0.75 3.50 -0.75 percent [+]
Turkey 7.50 Jul/15 7.50 500.00 4.50 percent [+]
United Kingdom 0.50 Jul/15 0.50 17.00 0.50 percent [+]
United States 0.25 Jul/15 0.25 20.00 0.25 percent [+]