India Interest Rate

News

India Cuts Key Rate to 6%
The Reserve Bank of India lowered its benchmark interest rate by 25bps to 6.0 percent on April 4th, as widely expected. It is the second rate cut so far this year. Policymakers said that the decision is consistent with the objective of achieving the medium-term target of 4 percent (+/- 2 percent) while supporting growth. The Committee noted that the output gap remains negative and the domestic economy is facing headwinds. The reverse repo rate was also lowered by 25bps to 5.75 percent and the marginal standing facility rate and the Bank Rate to 6.25 percent.
Published on 2019-04-04

RBI Unexpectedly Cuts Key Policy Rate to 6.25%
The Reserve Bank of India lowered unexpectedly its benchmark interest rate by 25bps to 6.25 percent on February 7th and shifted its stance to "neutral" in an attempt to boost a slowing economy as inflation rate remains well below its mid-point target of 4 percent.
Published on 2019-02-07

India Leaves Rates Steady as Expected
The Reserve Bank of India left its key policy rate steady at 6.5 percent for the second straight meeting on December 5th 2018, in line with market expectations. Policymakers reiterated the decision is consistent with a calibrated tightening that aims to achieve a 4 percent +/- 2 percent inflation target and support growth. The reverse repo rate was also left at 6.25 percent and the marginal standing facility rate and the Bank Rate at 6.75 percent each.
Published on 2018-12-05

India Leaves Rates Unchanged
The Reserve Bank of India unexpectedly left its key policy rate steady at 6.5 percent on October 5th 2018, following a 25bps hike in the previous meeting, surprising markets that expected a similar rise to support a falling currency and curb inflationary pressures from oil prices. Policymakers said the decision is consistent with a calibrated tightening that aims to achieve a 4 percent +/- 2 percent inflation target and support growth. The reverse repo rate was also left at 6.25 percent and the marginal standing facility rate and the Bank Rate at 6.75 percent each.
Published on 2018-10-05

India Raises Key Rate to 6.5%
The Reserve Bank of India increased its benchmark policy repo rate by 25bps to 6.5 percent on August 1st 2018, in line with market expectations and following a similar hike in the previous meeting. Policymakers mentioned uncertainty around inflation and slightly increased forecasts for H2 2018-19 to 4.8 percent from 4.7 percent. Although the central bank considers growth momentum is sustained, it noticed several global risks that could weigh on the outlook, including rising trade protectionism, geopolitical tensions and higher oil prices.
Published on 2018-08-01

India Hikes Key Repo Rate to 6.25%
The Reserve Bank of India raised its benchmark policy repo rate by 25bps to 6.25 percent on June 6th 2018 while markets expected no changes. It is the first hike in borrowing costs since January of 2014, mentioning upside risks to inflation that include higher oil prices and uncertainty in global financial markets. Policymakers said the decision is consistent with a neutral monetary policy stance and is in line with achieving the inflation target of 4 percent +/- 2 percent while supporting growth. The reverse repo rate was also adjusted to 6 percent from 5.75 percent and the marginal standing facility rate and the Bank Rate to 6.5 percent from 6.25 percent.
Published on 2018-06-06

India Leaves Monetary Policy Unchanged
The Reserve Bank of India left its key policy rate steady at 6 percent for the fourth meeting on April 5th 2018, matching market expectations. Policymakers said once again the decision is consistent with the neutral stance of monetary policy aiming to achieve the medium-term inflation target of 4 percent +/- 2 percent, while supporting growth. The central bank lowered inflation forecasts to 4.5 percent for Q4 of the current fiscal year (January to March 2018) from 5.1 percent. GDP growth for 2018-19 is seen higher at 7.4 percent from 6.6 percent in 2017-2018.
Published on 2018-04-05

India Keeps Rates Unchanged
The Reserve Bank of India kept its benchmark interest rate steady at 6 percent on February 7th 2018, matching market expectations. Policymakers reinforced the decision is consistent with a neutral stance of monetary policy aiming to reach the medium-term inflation target of 4 percent +/- 2 percent, while supporting growth. The central bank raised inflation forecasts to 5.1 percent for Q4 of the current fiscal year (January to March 2018) from 4.3-4.7 percent and GVA growth expectations were lowered to 6.6 percent for 2017-2018 from 6.7 percent. The reverse repo rate was also left on hold at 5.75 percent and the marginal standing facility rate and the Bank Rate at 6.25 percent.
Published on 2018-02-07

India Leaves Key Rate on Hold at 6%
The Reserve Bank of India kept its benchmark interest rate steady at 6 percent on December 6th 2017, in line with market expectations. Policymakers said the decision is consistent with a neutral stance of monetary policy aiming to reach the medium-term inflation target of 4 percent +/- 2 percent, while supporting growth. However, the central bank showed concerns about inflationary risks, mainly due to higher prices for house rent allowances, food and fuel and raised its inflation forecasts for the second half of the current financial year to between 4.3 and 4.7 percent from the previous 4.2 percent to 4.6 percent. The gross value added growth projection was left unchanged at 6.7 percent. The reverse repo rate was also left on hold at 5.75 percent and the marginal standing facility rate and the Bank Rate at 6.25 percent
Published on 2017-12-06

India Leaves Key Rate at 7-Year Low of 6%
The Reserve Bank of India kept its benchmark interest rate steady at 6 percent on October 4th 2017, following a 25bps cut in August and in line with market expectations. Policymakers said the decision is consistent with a neutral stance of monetary policy aiming to reach the medium-term target for inflation of 4 percent +/- 2 percent, while supporting growth. The central bank also increased its inflation forecasts for October-March to a range of 4.2 percent to 4.6 percent while the gross value added projection was cut to 6.7 percent from 7.3 percent.
Published on 2017-10-04

India Cuts Key Rate to 6%
The Reserve Bank of India lowered its benchmark interest rate by 25bps to 6 percent on August 2nd 2017, in line with market expectations. It is the first rate cut so far this year, bringing borrowing cost to the lowest since 2010 amid a sharp slowdown in inflation. The reverse repo rate was also lowered by 25bps to 5.75 percent and the marginal standing facility rate and the Bank Rate to 6.25 percent.
Published on 2017-08-02

India Leaves Repo Rate At 6.25%
The Reserve Bank of India held its benchmark repo rate at 6.25 percent on June 7th 2017 as widely expected, saying the decision is consistent with a neutral monetary policy stance. Policymakers added that the inflation outlook for the next months is uncertain and revised down its GVA growth forecasts for 2017-2018 by 10bps to 7.3 percent. The reverse repo rate was also left unchanged at 6 percent, following a 25bps cut in April; the bank rate at 6.5 percent and the cash rate at 4 percent.
Published on 2017-06-07

India Holds Repo Rate At 6.25%
The Reserve Bank of India held its benchmark repo rate at a six-year low of 6.25 percent on April 6th, as widely expected, and raised its reverse repo rate by 25bps to 6 percent, saying there are upside risks to the inflation outlook amid an uncertain global economic environment. Annual inflation rose to 3.65 percent in February 2017 from a record low of 3.17 percent in the previous month. For 2017-18, policymakers expect inflation to average 4.5 percent in the first half of the year and 5 percent in the second half.
Published on 2017-04-06

India Keeps Key Rate At 6.25%
The Reserve Bank of India left its key repo rate unchanged at 6.25 percent for the second time at its February 2017 meeting, compared to expectations of a 25bps cut. Policymakers decided to change the stance from accommodative to neutral while assessing the effects of demonetisation on inflation and growth. The reverse repo rate was also kept at 5.75 percent and the marginal standing facility and the bank rate at 6.75 percent.
Published on 2017-02-08

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.
Published on 2016-12-07

India Cuts Repo Rate to a 6-Year Low of 6.25%
The Reserve Bank of India lowered its repurchase rate by a surprise 25bps to 6.25 percent on October 4th, 2016, saying the stance of monetary policy remains accommodative and the decision will help to bring inflation rate back to central bank's 4 percent target in the medium-term while supporting growth. India’s consumer prices index rose 5 percent year-on-year in August, easing from its 6 percent increase in July. The repo policy rate is now at its lowest since November 2010.
Published on 2016-10-04

India Keeps Policy Rate Unchanged at 6.5% in August
The Reserve Bank of India left its benchmark repo rate unchanged at a five-year low of 6.5 percent during the meeting held on August 9th, as widely expected. While awaiting space for policy action, policymakers said the stance of monetary policy will remain accommodative and continue to emphasize the adequate provision of liquidity.
Published on 2016-08-09

India Holds Policy Rate Unchanged at 6.5%
The Reserve Bank of India left its benchmark repo rate unchanged at a five-year low of 6.5 percent during the meeting held on June 7th, as expected. While awaiting further data to assess the impact of seasonal rainfall and some external risks, policymakers said they would remain accommodative.
Published on 2016-06-07

India Cuts Repo Rate to Lowest in Over 5 Years
The Reserve Bank of India cut its benchmark repo rate by 25 bps to 6.5 percent during the meeting held on April 5th, 2016, as widely expected. It is the first reduction since September 2015 and the lowest rate since January 2011.
Published on 2016-04-05

RBI Leaves Policy Rate Unchanged
The Reserve Bank of India left its benchmark repo rate at 6.75 percent during the meeting held on February 2nd, as expected. While awaiting further data on inflation, policymakers said they would stay accommodative but look forward to the government's budget statement at the end of February.
Published on 2016-02-02

RBI Keeps Policy Rate Unchanged
The Reserve Bank of India left its benchmark repo rate at 6.75 percent, as expected. Policymakers said they will monitor commodity prices, especially food and oil, while tracking inflationary expectations and external developments.
Published on 2015-12-01

India Cuts Repo Rate by 50 Bps to 6.75%
The Reserve Bank of India cut its benchmark repo rate by a higher-than-expected 50 bps to 6.75 percent on September 29th, 2015. It is the fourth reduction this year, bringing the rate to the lowest since April of 2011, as policymakers tried to bolster the economy.
Published on 2015-09-29

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.
Published on 2015-08-04

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 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 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

Reserve Bank of India Leaves Rate on Hold
At its August 5th meeting, the Reserve Bank of India left the repo rate at 8 percent, but cut the amount of government bonds banks must hold with the central bank by 50 bps to 22 percent, aiming to increase bank credit.
Published on 2014-08-05

India Holds Policy Rate at 8%
At its June 3rd, 2014 meeting, Reserve Bank of India left the repo rate at 8 percent, but cut the amount of government bonds banks must hold with the central bank - the statutory liquidity ratio - by 50 bps to 22.5 percent, aiming to increase bank credit.
Published on 2014-06-03

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.
Published on 2014-04-01

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

India Raises Policy Repo Rate to 7.75%
The Reserve Bank of India has raised its policy repo rate for the second consecutive month by 25 basis points to fight high inflation and rolled back an emergency measure put in place in July to support the rupee.
Published on 2013-10-29

Reserve Bank of India Raises the Repo Rate to 7.5%
The Reserve Bank of India decided on September 20th to raise the repo rate by 25 bps to 7.5 percent, in an attempt to refrain inflationary pressures. At the same time, it reduced the marginal standing facility rate by 75 bps to 9.5 percent to preserve the value of the rupee, while scaled back the minimum daily cash reserve ratio banks must keep with the central bank.
Published on 2013-09-20

Reserve Bank of India Leaves Rates on Hold
Reserve Bank of India decided on July 30th to leave the repo rate unchanged at 7.25 percent, to support the rupee and citing increasing risks to growth outlook.
Published on 2013-07-30

India's Reserve Bank Keeps Rates Unchanged Amid Inflationary Risks
The RBI decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 7.25 per cent and to keep the cash reserve ratio of scheduled banks unchanged at 4.0 per cent of their net demand and time liabilities. The Central Bank warned of upward risks to inflation posed by a falling rupee and increases in food prices.
Published on 2013-06-17

Reserve Bank of India Cuts Interest Rate by 25bps to 7.25%
Based on an assessment of the current and prospective macroeconomic situation, the RBI has decided to reduce the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 7.5 per cent to 7.25 percent.
Published on 2013-05-03

Reserve Bank of India Cuts Interest Rate by 25 Basis Points
Based on an assessment of the current macroeconomic situation, the Reserve Bank of India decided to reduce the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 7.75 percent to 7.5 percent with immediate effect. Consequently, the reverse repo rate under the LAF stands adjusted to 6.5 percent and the marginal standing facility rate and the Bank Rate to 8.5 percent with immediate effect.
Published on 2013-03-19

India's Central Bank Cuts Interest Rates By 25 Basis Points
The Reserve Bank of India decided to cut its reference interest rate from 8 percent to 7.75 percent.
Published on 2013-01-29

India Keeps Interest Rate Unchanged
On the basis of the current macroeconomic assessment, the Reserve Bank of India has been decided to keep the cash reserve ratio unchanged at 4.25 per cent and keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 8.0 per cent.
Published on 2012-12-18

India Keeps Interest Rate Unchanged
The Reserve Bank of India has kept interest rates unchanged, but decreased reserve requirements, as the economic growth is falters under weakened global demand.
Published on 2012-12-11

India Cuts Rates
India cut interest rates for the fourth time since October and unveiled another stimulus package to counter the effect of the global recession on Asia's third- largest economy.
Published on 2009-01-02

India Cuts Interest Rates
India’s central bank cut interest rates for the third time in less than two months after last week’s terror attacks shook investor confidence in an economy already weakened by a global recession.
Published on 2008-12-08

India Lowers Key Rate
India's central bank unexpectedly lowered its key repurchase rate for the first time since 2004 as the global credit-market turmoil threatens to plunge the world economy into recession.
Published on 2008-10-20

India's Central Bank May Need to Rise Interest Rates
India's central bank should raise interest rates as inflation at a 16-year high hurts the government's electoral prospects before a vote due by May, according to the finance ministry's top economist.
Published on 2008-08-26