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. Interest Rate in India averaged 6.66 percent from 2000 until 2019, 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 expected to be 6.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in India to stand at 6.00 in 12 months time. In the long-term, the India Interest Rate is projected to trend around 6.25 percent in 2020, according to our econometric models.

India Interest Rate
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Calendar GMT Actual Previous Consensus TEForecast
2018-10-05 09:00 AM RBI Interest Rate Decision 6.5% 6.5% 6.75% 6.75%
2018-12-05 09:00 AM RBI Interest Rate Decision 6.5% 6.5% 6.5% 6.5%
2019-02-07 07:00 AM RBI Interest Rate Decision 6.25% 6.5% 6.5% 6.5%
2019-04-04 06:00 AM RBI Interest Rate Decision 6% 6.25% 6.0% 6%
2019-06-06 06:15 AM RBI Interest Rate Decision 6% 6%
2019-08-07 06:15 AM RBI Interest Rate Decision 6%
2019-10-04 06:15 AM RBI Interest Rate Decision 6%



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.

Excerpts from the RBI Press Release:

In the sixth bi-monthly monetary policy resolution of February 2019, CPI inflation was projected at 2.8 per cent for Q4:2018-19, 3.2-3.4 per cent for H1:2019-20 and 3.9 per cent for Q3:2019-20, with risks broadly balanced around the central trajectory. Actual inflation outcomes averaged 2.3 per cent in January-February.

The inflation path during 2019-20 is likely to be shaped by several factors. First, low food inflation during January-February will have a bearing on the near-term inflation outlook. Second, the fall in the fuel group inflation witnessed at the time of the February policy has become accentuated. Third, CPI inflation excluding food and fuel in February was lower than expected, which has imparted some downward bias to headline inflation. Fourth, international crude oil prices have increased by around 10 per cent since the last policy. Fifth, inflation expectations of households as well as input and output price expectations of producers polled in the Reserve Bank’s surveys have further moderated. Taking into consideration these factors and assuming a normal monsoon in 2019, the path of CPI inflation is revised downwards to 2.4 per cent in Q4:2018-19, 2.9-3.0 per cent in H1:2019-20 and 3.5-3.8 per cent in H2:2019-20, with risks broadly balanced.

GDP growth for 2019-20 in the February policy was projected at 7.4 per cent in the range of 7.2-7.4 per cent in H1, and 7.5 per cent in Q3 – with risks evenly balanced. Since then, there are some signs of domestic investment activity weakening as reflected in a slowdown in production and imports of capital goods. The moderation of growth in the global economy might impact India’s exports. On the positive side, however, higher financial flows to the commercial sector augur well for economic activity. Private consumption, which has remained resilient, is also expected to get a fillip from public spending in rural areas and an increase in disposable incomes of households due to tax benefits. Business expectations continue to be optimistic. Taking into consideration the above factors, GDP growth for 2019-20 is projected at 7.2 per cent – in the range of 6.8-7.1 per cent in H1:2019-20 and 7.3-7.4 per cent in H2 – with risks evenly balanced.

The MPC notes that the output gap remains negative and the domestic economy is facing headwinds, especially on the global front. The need is to strengthen domestic growth impulses by spurring private investment which has remained sluggish.


RBI | Stefanie Moya | stefanie.moya@tradingeconomics.com
4/4/2019 8:07:16 AM



India Money Last Previous Highest Lowest Unit
Interest Rate 6.00 6.25 14.50 4.25 percent [+]
Cash Reserve Ratio 4.00 4.00 10.50 4.00 percent [+]
Money Supply M1 37218.10 34569.30 37218.10 80.15 INR Billion [+]
Interbank Rate 6.40 6.48 12.97 3.10 percent [+]
Money Supply M2 37403.94 35970.22 37403.94 1127.49 INR Billion [+]
Money Supply M3 154301.05 150535.59 154301.05 123.52 INR Billion [+]
Foreign Exchange Reserves 420060.00 418690.00 426080.00 29048.00 USD Million [+]
Central Bank Balance Sheet 18556.50 18936.98 23419.03 1624.31 INR Billions [+]
Loan Growth 13.00 14.20 18.70 4.10 percent [+]
Reverse Repo Rate 5.75 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 May of 2019.

Actual Previous Highest Lowest Dates Unit Frequency
6.00 6.25 14.50 4.25 2000 - 2019 percent Daily




Country Last Previous
Argentina 71.22 May/19
Turkey 24.00 Apr/19
Mexico 8.25 May/19
Russia 7.75 Apr/19
South Africa 6.75 May/19
Brazil 6.50 May/19
India 6.00 Apr/19
Indonesia 6.00 May/19
China 4.35 Apr/19
Saudi Arabia 3.00 Apr/19
United States 2.50 May/19
Singapore 2.24 Mar/19
Canada 1.75 Apr/19
South Korea 1.75 Apr/19
Australia 1.50 May/19
United Kingdom 0.75 May/19
Euro Area 0.00 Apr/19
France 0.00 Apr/19
Germany 0.00 Apr/19
Italy 0.00 Apr/19
Netherlands 0.00 Apr/19
Spain 0.00 Apr/19
Japan -0.10 Apr/19
Switzerland -0.75 Apr/19


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