Interest Rate in India

India Interest Rate | Economic News & Forecasts

India - Interest Rate

Reserve Bank of India slashes rates at unscheduled May meeting

In an unscheduled monetary policy meeting ending on 22 May, which replaced the meeting scheduled to end on 5 June, the Reserve Bank of India (RBI) Governor Shaktikanta Das announced fresh monetary policy loosening. This adds to the array of measures the RBI has already introduced as part of efforts to mitigate the economic consequences of the coronavirus pandemic and national lockdown.

The RBI lowered all interest rates by 40 basis points. This brought the reverse repurchase rate (the rate at which banks are paid for depositing cash at the RBI), repurchase rate (what the RBI charges banks for borrowing from it) and marginal standing facility rate (what the RBI charges banks for borrowing from it at times of tight liquidity) down to 3.35%, 4.00% and 4.25%, respectively.

In addition to lowering rates, the RBI announced less-conventional easing measuring, including extending the current loan moratorium by another three months until 31 August and easing pre- and post-shipment export credit rules to help exporting businesses. Regarding the outlook, the RBI underlined it would continue with its accommodative stance for as long as necessary to revive growth, while ensuring that inflation remains within the target.

Commenting on the monetary policy development, Prakash Sakpal of ING said: “[We] view today’s move as an affirmation that the recently announced 10% of GDP stimulus package (including all previously announced monetary easing form the RBI) isn’t enough to help the economy withstand the Covid-19 storm. The much-touted big stimulus package is more about long-term structural economic reforms rather than an immediate real boost to the economy. As such, the central bank is carrying the burden of supporting growth.”

FocusEconomics Consensus Forecast panelists are currently evaluating their interest rate forecasts. New Consensus Forecasts will be available from 26 May.

India - Interest Rate Data

2015   2016   2017   2018   2019  
Policy Interest Rate (%)6.75  6.25  6.00  6.25  4.40  

Sample Report

5 years of economic forecasts for more than 30 economic indicators.

Download

India Interest Rate Chart


India Interest Rate
Note: Reserve Bank of India Repurchase Rate in %.
Source: Reserve Bank of India.

India Facts

Value Change Date
Bond Yield6.50-0.04 %Jan 01
Exchange Rate71.23-0.09 %Jan 01

Sample Report

Get a sample report showing our regional, country and commodities data and analysis.

Download

Request a Trial

Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.

Sign Up

Economic News

Search form