India Interest Rate  2000-2017 | Data | Chart | Calendar | Forecast | News

The Reserve Bank of India unexpectedly left its benchmark repo rate unchanged at a six-year low of 6.25 percent during the meeting held on December 7th despite wide expectations of a rate cut, following a severe cash crisis. Interest Rate in India averaged 6.70 percent from 2000 until 2016, 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.

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Calendar GMT Reference Actual Previous Consensus Forecast (i)
2016-08-09 05:30 AM RBI Interest Rate Decision 6.50% 6.50% 6.50% 6.50%
2016-10-04 09:00 AM RBI Interest Rate Decision 6.25% 6.50% 6.50% 6.50%
2016-12-07 09:00 AM RBI Interest Rate Decision 6.25% 6.25% 6% 6%
2017-02-08 09:00 AM RBI Interest Rate Decision 6.25% 6%

India Keeps Monetary Policy Unchanged at 6.25%

The Reserve Bank of India unexpectedly left its benchmark repo rate unchanged at a six-year low of 6.25 percent during the meeting held on December 7th despite wide expectations of a rate cut, following a severe cash crisis.

The central bank also hold its reverse repo rate steady at 5.75 percent and the marginal standing facility and the bank rate at 6.75 percent.

Excerpts from the statement by Governor Urjit Patel:

Liquidity conditions have undergone large shifts in Q3 so far. Surplus conditions in October and early November were overwhelmed by the impact of the withdrawal of SBNs from November 9. Currency in circulation plunged by `7.4 trillion up to December 2; consequently, net of replacements, deposits surged into the  banking system, leading to a massive increase in its excess reserves. The Reserve Bank scaled up its liquidity operations through variable rate reverse repo auctions of a wide range of tenors from overnight to 91 days, absorbing liquidity (net) of `5.2 trillion. The Reserve Bank allowed oil bonds issued by the Government as eligible securities under the LAF. From the fortnight beginning November 26, an incremental CRR of 100 per cent was applied on the increase in net demand and time liabilities (NDTL) between September 16, 2016 and November 11, 2016 as a temporary measure to drain excess liquidity from the system. From November 28, liquidity absorption fell back and the Reserve Bank undertook variable rate repo auctions of `3.3 trillion on November 28. As expected, money market conditions tightened thereafter and the weighted average call rate (WACR) traded near the upper bound of the LAF corridor on that day before dropping back to the policy repo rate on November 30. All other rates in the system firmed up in sympathy, with term premia getting restored gradually. Through this episode, active liquidity management prevented the WACR from falling even to the fixed rate reverse repo rate, the lower bound of the LAF corridor. Liquidity management was bolstered by an increase in the limit on securities under the market stabilisation scheme (MSS) from `0.2 trillion to `6 trillion on November 29. There have been two issuances of cash management bills under MSS for `1.4 trillion by December 6, 2016.

In the external sector, India’s merchandise exports rebounded in September and October. The return to positive territory was supported by a pick-up in both POL and non-POL exports. 

CPI inflation excluding food and fuel has been resistant to downward impulses and could set a floor to headline inflation. With the OPEC’s agreement to cut production, crude prices may firm up in the coming months. Global developments, especially as financial markets factor in the futur estance of US monetary and fiscal policy, could impart volatility to the exchange rate thereby feeding into inflation.

While supply disruptions in the backwash of currency replacement may drag down growth this year, it is important to analyse more information and experience before judging their full effects and their persistence – short-term developments that influence the outlook disproportionately warrant caution with respect to setting the monetary policy stance. If the impact is transient as widely expected, growth should rebound strongly. Turning to inflation, food prices other than vegetables are exhibiting sustained firmness and a pick-up in momentum. Given these indicators of underlying inflation, it is appropriate to look through the transitory but unclear effects of the withdrawal of SBNs while setting the monetary policy stance. On balance, therefore, it is prudent to wait and watch how these factors play out and impinge upon the outlook. Accordingly, the policy repo rate has been kept on hold in this review, while retaining an accommodative policy stance. 

RBI l Rida Husna |
12/7/2016 10:07:07 AM

India Money Last Previous Highest Lowest Unit
Interest Rate 6.25 6.25 14.50 4.25 percent [+]
Cash Reserve Ratio 4.00 4.00 10.50 4.00 percent [+]
Interbank Rate 6.27 6.19 12.97 3.10 percent [+]
Money Supply M1 21221.30 27685.20 28420.20 80.15 INR Billion [+]
Money Supply M2 20657.98 26951.11 29134.50 1127.49 INR Billion [+]
Money Supply M3 120449.46 123767.67 123931.54 123.52 INR Billion [+]
Foreign Exchange Reserves 359150.00 360300.00 383643.00 29048.00 USD Million [+]
Central Bank Balance Sheet 23419.03 21061.49 23419.03 1624.31 INR Billions [+]
Loan Growth 5.10 5.80 18.70 5.10 percent [+]

India Interest Rate Notes

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. India Interest Rate - actual data, historical chart and calendar of releases - was last updated on January of 2017.

Actual Previous Highest Lowest Dates Unit Frequency
6.25 6.25 14.50 4.25 2000 - 2016 percent Daily

Ghana 25.50 Dec/16
Argentina 24.75 Jan/17
Malawi 24.00 Dec/16
Mozambique 23.25 Dec/16
Gambia 23.00 Dec/16
Venezuela 22.48 Nov/16
Haiti 20.00 Dec/16
Iran 20.00 Dec/16
Belarus 17.00 Jan/17
Angola 16.00 Dec/16
Zambia 15.50 Dec/16
Afghanistan 15.00 Dec/16
Azerbaijan 15.00 Dec/16
Yemen 15.00 Dec/16
Egypt 14.75 Dec/16
Sudan 14.20 Dec/16
Congo 14.00 Jan/17
Mongolia 14.00 Dec/16
Nigeria 14.00 Dec/16
Ukraine 14.00 Dec/16
Liberia 13.70 Dec/16
Brazil 13.00 Jan/17
Guinea 12.50 Dec/16
Suriname 12.50 Dec/15
Seychelles 12.36 Nov/16
Kazakhstan 12.00 Jan/17
Tanzania 12.00 Oct/16
Uganda 12.00 Dec/16
Djibouti 11.60 Dec/15
Sierra Leone 11.00 Dec/16
Tajikistan 11.00 Dec/16
Zimbabwe 10.68 Dec/16
Kenya 10.00 Dec/16
Lebanon 10.00 Dec/16
Myanmar 10.00 Dec/16
Russia 10.00 Dec/16
Sao Tome and Principe 10.00 Dec/16
Uruguay 9.25 Dec/16
Mauritania 9.00 Dec/16
Moldova 9.00 Dec/16
Uzbekistan 9.00 Dec/16
Madagascar 8.30 Dec/16
Ecuador 8.10 Dec/16
Turkey 8.00 Dec/16
Burundi 7.95 Dec/16
Cape Verde 7.50 Dec/16
Colombia 7.50 Dec/16
Maldives 7.00 Dec/16
Namibia 7.00 Dec/16
Nepal 7.00 Dec/16
South Africa 7.00 Dec/16
Sri Lanka 7.00 Dec/16
Swaziland 7.00 Dec/16
Bangladesh 6.75 Dec/16
Lesotho 6.64 Sep/16
Georgia 6.50 Dec/16
Vietnam 6.50 Dec/16
Armenia 6.25 Dec/16
India 6.25 Dec/16
Papua New Guinea 6.25 Dec/16
Rwanda 6.25 Dec/16
Bhutan 6.00 Dec/16
Mexico 5.75 Dec/16
Pakistan 5.75 Dec/16
Bosnia and Herzegovina 5.69 Oct/16
Botswana 5.50 Dec/16
Brunei 5.50 Dec/16
Dominican Republic 5.50 Dec/16
Honduras 5.50 Dec/16
Paraguay 5.50 Dec/16
Ethiopia 5.00 Dec/16
Guyana 5.00 Dec/16
Iceland 5.00 Dec/16
Jamaica 5.00 Dec/16
Kyrgyzstan 5.00 Dec/16
Indonesia 4.75 Dec/16
Qatar 4.75 Dec/16
Trinidad and Tobago 4.75 Nov/16
Benin 4.50 Dec/16
Burkina Faso 4.50 Dec/16
Guinea Bissau 4.50 Dec/16
Ivory Coast 4.50 Dec/16
Mali 4.50 Dec/16
Niger 4.50 Dec/16
Senegal 4.50 Dec/16
Togo 4.50 Dec/16
El Salvador 4.46 Oct/16
China 4.35 Dec/16
Laos 4.25 Dec/16
Peru 4.25 Jan/17
Tunisia 4.25 Dec/16
Algeria 4.00 Dec/16
Bahamas 4.00 Dec/16
Iraq 4.00 Dec/16
Macedonia 4.00 Nov/16
Mauritius 4.00 Dec/16
Serbia 4.00 Jan/17
Jordan 3.75 Dec/16
Chile 3.50 Dec/16
Barbados 3.29 Dec/16
Guatemala 3.00 Dec/16
Libya 3.00 Dec/16
Malaysia 3.00 Dec/16
Philippines 3.00 Dec/16
Belize 2.50 Dec/16
Croatia 2.50 Nov/16
Kuwait 2.50 Dec/16
Cameroon 2.45 Dec/16
Central African Republic 2.45 Dec/16
Chad 2.45 Dec/16
Equatorial Guinea 2.45 Dec/16
Gabon 2.45 Dec/16
Republic of the Congo 2.45 Dec/16
Cuba 2.25 Dec/16
Morocco 2.25 Dec/16
Bolivia 2.21 Nov/16
Saudi Arabia 2.00 Dec/16
Costa Rica 1.75 Dec/16
New Zealand 1.75 Dec/16
Romania 1.75 Jan/17
Australia 1.50 Dec/16
Poland 1.50 Jan/17
Thailand 1.50 Dec/16
United Arab Emirates 1.50 Dec/16
Cambodia 1.45 Oct/16
Taiwan 1.38 Dec/16
Albania 1.25 Dec/16
South Korea 1.25 Jan/17
Oman 1.24 Dec/16
Comoros 1.15 Dec/16
Bahrain 1.00 Dec/16
Hong Kong 1.00 Dec/16
Macau 1.00 Dec/16
Hungary 0.90 Dec/16
United States 0.75 Dec/16
Canada 0.50 Dec/16
Fiji 0.50 Dec/16
Norway 0.50 Dec/16
Panama 0.48 Oct/16
Singapore 0.46 Dec/16
New Caledonia 0.25 Dec/16
United Kingdom 0.25 Dec/16
Israel 0.10 Dec/16
Czech Republic 0.05 Dec/16
Austria 0.00 Dec/16
Belgium 0.00 Dec/16
Bulgaria 0.00 Jan/17
Cyprus 0.00 Dec/16
Estonia 0.00 Dec/16
Euro Area 0.00 Dec/16
Finland 0.00 Dec/16
France 0.00 Dec/16
Germany 0.00 Dec/16
Greece 0.00 Dec/16
Ireland 0.00 Dec/16
Italy 0.00 Dec/16
Latvia 0.00 Dec/16
Lithuania 0.00 Dec/16
Luxembourg 0.00 Dec/16
Malta 0.00 Dec/16
Netherlands 0.00 Dec/16
Portugal 0.00 Dec/16
Slovakia 0.00 Dec/16
Slovenia 0.00 Dec/16
Spain 0.00 Dec/16
Japan -0.10 Dec/16
Sweden -0.50 Dec/16
Denmark -0.65 Dec/16
Switzerland -0.75 Dec/16