India Interest Rate  2000-2018 | Data | Chart | Calendar | Forecast | News

The Reserve Bank of India increased its key 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 reinforced that 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 6.25 percent from 6 percent and the marginal standing facility rate and the Bank Rate to 6.75 percent from 6.5 percent. Interest Rate in India averaged 6.66 percent from 2000 until 2018, 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.

India Interest Rate
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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.

Policymakers reinforced that 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 6.25 percent from 6 percent and the marginal standing facility rate and the Bank Rate to 6.75 percent from 6.5 percent.

Excerpts from the RBI Press Release:

The inflation outlook is likely to be shaped by several factors. First, the central government has decided to fix the minimum support prices (MSPs) of at least 150 per cent of the cost of production for all kharif crops for the sowing season of 2018-19. This increase in MSPs for kharif crops, which is much larger than the average increase seen in the past few years, will have a direct impact on food inflation and second round effects on headline inflation. Second, the overall performance of the monsoon so far augurs well for food inflation in the medium-term. Third, crude oil prices have moderated slightly, but remain at elevated levels. Fourth, the central government has reduced Goods and Services Tax (GST) rates on several goods and services. This will have some direct moderating impact on inflation, provided there is a pass-through of reduced GST rates to retail consumers. Fifth, inflation in items excluding food and fuel has been broad-based and has risen significantly in recent months, reflecting greater pass-through of rising input costs and improving demand conditions. Finally, financial markets continue to be volatile. Based on an assessment of the above-mentioned factors, inflation is projected at 4.6 per cent in Q2, 4.8 per cent in H2 of 2018-19 and 5.0 per cent in Q1:2019-20, with risks evenly balanced. Excluding the HRA impact, CPI inflation is projected at 4.4 per cent in Q2, 4.7-4.8 per cent in H2 and 5.0 per cent in Q1:2019-20.

Turning to the growth outlook, various indicators suggest that economic activity has continued to be strong. The progress of the monsoon so far and a sharper than the usual increase in MSPs of kharif crops are expected to boost rural demand by raising farmers’ income. Robust corporate earnings, especially of fast moving consumer goods (FMCG) companies, also reflect buoyant rural demand. Investment activity remains firm even as there has been some tightening of financing conditions in the recent period. Increased FDI flows in recent months and continued buoyant domestic capital market conditions bode well for investment activity. The Reserve Bank’s IOS indicates that activity in the manufacturing sector is expected to remain robust in Q2, though there may be some moderation in pace. Rising trade tensions may, however, have an adverse impact on India’s exports. Based on an overall assessment, GDP growth projection for 2018-19 is retained, as in the June statement, at 7.4 per cent, ranging 7.5-7.6 per cent in H1 and 7.3-7.4 per cent in H2, with risks evenly balanced; GDP growth for Q1:2019-20 is projected at 7.5 per cent.

The MPC notes that domestic economic activity has continued to sustain momentum and the output gap has virtually closed. However, uncertainty around domestic inflation needs to be carefully monitored in the coming months. In addition, recent global developments raise some concerns. Rising trade protectionism poses a grave risk to near-term and long-term global growth prospects by adversely impacting investment, disrupting global supply chains and hampering productivity. Geopolitical tensions and elevated oil prices continue to be the other sources of risk to global growth. 


RBI | Joana Taborda | joana.taborda@tradingeconomics.com
8/1/2018 9:56:24 AM



Calendar GMT Actual Previous Consensus TEForecast
2018-04-05 09:00 AM RBI Interest Rate Decision 6% 6% 6%
2018-06-06 09:00 AM RBI Interest Rate Decision 6.25% 6% 6% 6%
2018-08-01 09:00 AM RBI Interest Rate Decision 6.5% 6.25% 6.5% 6.5%
2018-10-05 09:00 AM RBI Interest Rate Decision 6.5% 6.5%
2018-12-05 09:00 AM RBI Interest Rate Decision 6.5%
2019-02-06 09:00 AM RBI Interest Rate Decision 6.75%


India Money Last Previous Highest Lowest Unit
Interest Rate 6.50 6.25 14.50 4.25 percent [+]
Cash Reserve Ratio 4.00 4.00 10.50 4.00 percent [+]
Interbank Rate 6.98 6.85 12.97 3.10 percent [+]
Money Supply M1 31578.50 31891.30 32788.10 80.15 INR Billion [+]
Money Supply M2 32980.70 32897.08 32980.70 1127.49 INR Billion [+]
Money Supply M3 142070.49 141370.26 142070.49 123.52 INR Billion [+]
Central Bank Balance Sheet 16937.76 16198.64 23419.03 1624.31 INR Billions [+]
Foreign Exchange Reserves 399280.00 400100.00 426080.00 29048.00 USD Million [+]
Loan Growth 13.50 12.90 18.70 4.10 percent [+]
Reverse Repo Rate 6.25 6.00 13.50 3.25 percent [+]


India Interest Rate

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 September of 2018.

Actual Previous Highest Lowest Dates Unit Frequency
6.50 6.25 14.50 4.25 2000 - 2018 percent Daily




interest rate by Country
Country Last
Argentina 60.00 Sep/18
Turkey 24.00 Sep/18
Mexico 7.75 Aug/18
Russia 7.50 Sep/18
Brazil 6.50 Sep/18
India 6.50 Aug/18
South Africa 6.50 Sep/18
Indonesia 5.50 Aug/18
China 4.35 Aug/18
Saudi Arabia 2.50 Aug/18
United States 2.00 Aug/18
Australia 1.50 Sep/18
Canada 1.50 Sep/18
South Korea 1.50 Aug/18
Singapore 1.06 Aug/18
United Kingdom 0.75 Sep/18
Euro Area 0.00 Sep/18
France 0.00 Sep/18
Germany 0.00 Sep/18
Italy 0.00 Sep/18
Netherlands 0.00 Sep/18
Spain 0.00 Sep/18
Japan -0.10 Sep/18
Switzerland -0.75 Sep/18


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