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 6.71 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.

India Interest Rate
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Actual Previous Highest Lowest Dates Unit Frequency
7.25 7.25 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 Monday, August 31, 2015.

Calendar GMT Reference Actual Previous Consensus Forecast (i)
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% 7.25%
2015-09-29 06:30 AM 7.25% 7%

RBI Holds Policy Rate Unchanged

The Reserve Bank of India left its benchmark repo rate at 7.25 percent, as expected. Policymakers said they await greater transmission of its monetary easing cycle embarking since January this year and leave possibilities for a more accommodative policies, depending on inflation outlook and possible action from the Federal Reserve.

The central bank also decided to keep the cash reserve at 4.0 percent, to provide liquidity under overnight repos at 0.25 percent and to maintain daily variable rate repos and reverse repos to smooth liquidity.

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

In India, the economic recovery is still work in progress. The Reserve Bank’s survey-based indicators point to flat capacity utilisation and new orders, with corporate sales growth declining – although lower inflation explains some of the compression in top lines.  Investment, as measured by new projects, is still weak, primarily because of still-low capacity utilization. In the critically important power sector, where final demand is strong, the recent step-up in generation in response to the commendable easing of bottlenecks in coal supply is being partly negated by structural problems relating to clogging of transmission grids and the dire financial state of electricity distribution companies (DISCOMs).

However, there are signs that consumption demand, especially in urban areas, is picking up. Car sales for July were strong. Nominal bank credit growth is lower than previous years, but adjusted for lower inflation as well as for lower borrowing by oil marketing companies and increased borrowing from commercial paper markets, credit availability seems to be adequate for most sectors.

Liquidity conditions have been very easy in June and July. A seasonal reduction in demand for currency and increased spending by Government coupled with structural factors such as low credit deployment relative to the volume of deposit mobilisation contributed to surplus conditions in the money markets

Headwinds from weak global demand conditions restrained merchandise exports. The contraction in exports in Q1 of 2015-16, both volume and value, was the steepest since Q2 of 2009-10.

Given the policy action was front-loaded in June, it is prudent to keep the policy rate unchanged at the current juncture while maintaining the accommodative stance of monetary policy. Short term real risk free rates are nevertheless supportive of borrowing by interest rate sensitive consumer segments such as housing and automobiles. Significant uncertainty will be resolved in the coming months, including the likely persistence of recent inflationary pressures, the full monsoon outturn, as well as possible Federal Reserve actions. As the Reserve Bank awaits greater transmission of its front-loaded past actions, it will monitor developments for emerging room for more accommodation.

The outlook for growth is improving gradually. Favourable real income effects could accrue from weaker commodity prices, in particular crude oil, and a possible step-up in agricultural activity if monsoon conditions continue to improve. On the other hand, global growth projections for 2015 have generally been revised downwards and, therefore, the export contraction could become a prolonged drag on growth going forward. Notwithstanding some improvement in the state of stalled projects, supply constraints continue to be binding and new investment demand emanating from the private sector and the central Government remains subdued. On an assessment of the evolving balance of risks, the projected output growth for 2015-16 has been retained at 7.6 percent.

RBI l Rida Husna l
8/4/2015 7:40:57 AM

Recent Releases

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.
Published on 2015-06-02

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 Money Last Previous Highest Lowest Unit
Interest Rate 7.25 7.25 14.50 4.25 percent [+]
Interbank Rate 7.44 7.27 12.97 3.10 percent [+]
Money Supply M1 23252.10 23404.21 24237.40 80.15 INR Billion [+]
Money Supply M2 23719.07 23871.18 24701.67 1127.49 INR Billion [+]
Money Supply M3 109829.57 109479.37 109829.57 123.52 INR Billion [+]
Central Bank Balance Sheet 13942.64 13911.52 13955.84 1624.31 INR Billions [+]
Foreign Exchange Reserves 355350.00 354430.00 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 Aug/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 4.60 Aug/15 4.85 10.98 4.60 percent [+]
Euro Area 0.05 Jul/15 0.05 4.75 0.05 percent [+]
India 7.25 Aug/15 7.25 14.50 4.25 percent [+]
Indonesia 7.50 Aug/15 7.50 12.75 5.75 percent [+]
Japan 0.00 Aug/15 0.00 9.00 0.00 percent [+]
Mexico 3.00 Jul/15 3.00 9.25 3.00 percent [+]
Russia 11.00 Jul/15 11.50 17.00 5.00 percent [+]
South Korea 1.50 Aug/15 1.50 5.25 1.50 percent [+]
Switzerland -0.75 Jun/15 -0.75 3.50 -0.75 percent [+]
Turkey 7.50 Aug/15 7.50 500.00 4.50 percent [+]
United Kingdom 0.50 Aug/15 0.50 17.00 0.50 percent [+]
United States 0.25 Jul/15 0.25 20.00 0.25 percent [+]