The Reserve Bank of India held its benchmark policy repo at 6.5 percent for the third consecutive meeting in August 2023, matching market expectations, as inflation concerns resurfaced following higher-than-usual seasonal spikes in food prices in recent weeks. Policymakers said that the decision remains to align inflation to the RBI’s target range of 4% ± 2% while supporting economic growth. India's annual inflation accelerated for the first time in five months to 4.81% in June from May’s over-two-year low of 4.31%. The RBI also left both the standing deposit facility (SDF) rate and the marginal standing facility (MSF) at 6.25% and 6.75, respectively. The board has raised rates by an aggregate of 250bps starting from May 2022, bringing borrowing costs to a level of January 2019. Additionally, the central bank maintained its growth forecast for the fiscal year 2024 at 6.5% while raising its inflation forecast to 5.4% from 5.1%; 6.2% seen in Q2; 5.7% in Q3, and 5.2% in Q4. source: Reserve Bank of India
Interest Rate in India averaged 6.37 percent from 2000 until 2023, reaching an all time high of 14.50 percent in August of 2000 and a record low of 4.00 percent in May of 2020. This page provides - India Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. India Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on August of 2023.
Interest Rate in India is expected to be 6.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the India Interest Rate is projected to trend around 5.50 percent in 2024 and 5.00 percent in 2025, according to our econometric models.