India Interest Rate

The Reserve Bank of India (RBI) kept its benchmark policy repo rate at 6.5% for the tenth consecutive meeting in October 2024, aligning with market expectations, but tweaked its policy stance to neutral, opening the door for rate cuts amid early signs of a growth slowdown in the economy. This decision came after annual inflation slightly accelerated to 3.65% in August 2024, driven by rising food prices, though it remained below the RBI's target of 4% in five years. Additionally, the central bank maintained its economic growth forecast for the fiscal year 2024-25 at 7.2%, with estimates of 7.0% for Q2, 7.4% for Q3, 7.4% for Q4, and 7.3% for Q1 of FY 2025-26. The RBI also kept its inflation expectations at 4.5%, with projections of 4.1% for Q2, 4.8% for Q3, 4.2% for Q4, and 4.3% for Q1 of FY 2025-26. Moreover, the RBI held the standing deposit facility (SDF) rate at 6.25% while keeping the marginal standing facility (MSF) and bank rates unchanged at 6.75%.

The Reserve Bank of India maintained its benchmark policy repo at 6.5% for the ninth consecutive meeting in August 2024 to ensure inflation is down towards its 4% medium-term target while supporting growth, aligning with the market expected. The latest move came after annual inflation accelerated to a four-month high of 5.08% in June 2024, boosted by rising food prices but remaining within the RBI's tolerance of the 2-6% target range. Additionally, the central bank kept the economic growth forecast for the fiscal year 2024-25 at 7.2%, with Q1 at 7.1%, slightly down from the earlier projection of 7.3%; 7.2% for Q2; 7.3% for Q3; and 7.2% for Q4 while maintaining inflation expectations at 4.5%, with a projection of 4.4% for Q2 (revised from 3.8%); 4.7% for Q3 (revised from 4.6%); and 4.3% for Q4 (revised from 4.5%). The RBI also left the standing deposit facility (SDF) rate at 6.25% while holding the marginal standing facility (MSF) and bank rates unchanged at 6.75%.

The Reserve Bank of India kept its benchmark policy repo at 6.5% for the eighth consecutive meeting in June 2024, as widely expected amid persistent price pressures and remaining economy resilient. The latest move came after annual inflation stood at 4.85% in April 2024, almost unchanged from March, staying within the RBI's 2-6% target range in the medium term. RBI Governor Shaktikanta Das said that uncertainties would continue to weigh on the inflation outlook amid ongoing deflation in fuel, but food inflation remained elevated. Additionally, the central bank revised the economic growth forecast for the fiscal year 2025 to 7.2% from 7%, with a projection of 7.2% for Q2; 7.3% for Q3; and 7.2% for Q4, while maintaining inflation expectations at 4.5%, with a projection of 4.9% for Q1; 3.8% for Q2; 4.6% for Q3, and 4.5% for Q4. The RBI also held the marginal standing facility (MSF) and bank rates unchanged at 6.75% while keeping the standing deposit facility (SDF) rate at 6.25%.