India Interest Rate
Central bank policy rate — the main rate a central bank uses to steer monetary conditions.
Interest Rate in India increased to 5.50 percent in Oct 2026 from 5.25 percent in Jul 2026.
India Interest Rate — History
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India Interest Rate — analysis in simple words
Latest reading
Interest Rate in India increased to 5.50 percent in Oct 2026 from 5.25 percent in Jul 2026.
Over the last three months it rose once and was unchanged twice.
Recent trend
A year earlier (Aug 2025) it was 5.50%, so the latest figure is 0.00 percentage points the same.
Over the past five years the average was 5.71%, with a range from 4.00% to 6.50%. The latest value is below that five-year average.
Historical context
This data series starts in Jan 1990 and has 440 monthly observations. The latest reading is higher than 14% of all of them.
The highest value on record is 12.00% (Oct 1991) and the lowest is 4.00% (May 2020). The long-run average is 7.74%.
Compared with other countries
Among 59 economies with recent data, India ranks 13th from the top. The median across all these economies is 2.75%, so India is above the typical country.
Among 18 major economies tracked on this site it ranks 5th.
Context
Latest inflation is 5.5% (Sep 2026), so the real policy rate — policy rate minus inflation — is about -0.04%. A positive real rate means borrowing costs are above the pace of price increases.
The rate changed in 5 of the last 24 months.
Statistics
- Latest
- 5.50%Oct 2026
- Previous
- 5.25%
- 5-year average
- 5.71%
- Long-run average
- 7.74%since Jan 1990
- All-time high
- 12.00%Oct 1991
- All-time low
- 4.00%May 2020
- Observations
- 440Monthly
Recent Data
| Period | Value | Change |
|---|---|---|
| Oct 2026 | 5.50% | ▲ +0.25 pp |
| Jul 2026 | 5.25% | ■ 0.00 pp |
| Jun 2026 | 5.25% | ■ 0.00 pp |
| May 2026 | 5.25% | ■ 0.00 pp |
| Apr 2026 | 5.25% | ■ 0.00 pp |
| Mar 2026 | 5.25% | ■ 0.00 pp |
| Feb 2026 | 5.25% | ■ 0.00 pp |
| Jan 2026 | 5.25% | ■ 0.00 pp |
| Dec 2025 | 5.25% | ▼ −0.25 pp |
| Nov 2025 | 5.50% | ■ 0.00 pp |
| Oct 2025 | 5.50% | ■ 0.00 pp |
| Sep 2025 | 5.50% | ■ 0.00 pp |
| Aug 2025 | 5.50% | ■ 0.00 pp |
| Jul 2025 | 5.50% | ■ 0.00 pp |
| Jun 2025 | 5.50% | ▼ −0.50 pp |
| May 2025 | 6.00% | ■ 0.00 pp |
| Apr 2025 | 6.00% | ▼ −0.25 pp |
| Mar 2025 | 6.25% | ■ 0.00 pp |
| Feb 2025 | 6.25% | ▼ −0.25 pp |
| Jan 2025 | 6.50% | ■ 0.00 pp |
| Dec 2024 | 6.50% | ■ 0.00 pp |
| Nov 2024 | 6.50% | ■ 0.00 pp |
| Oct 2024 | 6.50% | ■ 0.00 pp |
| Sep 2024 | 6.50% | ■ 0.00 pp |
| Aug 2024 | 6.50% | ■ 0.00 pp |
| Jul 2024 | 6.50% | ■ 0.00 pp |
| Jun 2024 | 6.50% | ■ 0.00 pp |
| May 2024 | 6.50% | ■ 0.00 pp |
| Apr 2024 | 6.50% | ■ 0.00 pp |
| Mar 2024 | 6.50% |
RBI policy tracker — current rates
As published on the Reserve Bank of India website, checked 17 Oct 2026.
RBI reference exchange rates (16 Oct 2026)
The repo rate sits in the middle of a corridor: banks with spare cash can deposit it with the RBI at the SDF rate (5.25%), and banks short of cash can borrow overnight at the MSF rate (5.75%). The overnight money-market rate usually trades inside this band, close to the repo rate. CRR and SLR are not interest rates — they are the shares of deposits that banks must set aside, which affects how much they can lend.
RBI repo rate decision history
Effective dates from the Bank for International Settlements (BIS) daily policy-rate series; latest rate from the RBI website.
Each row is a change in the RBI policy repo rate. Between Jun 2015 and today the RBI made 9 hikes and 16 cuts listed here. One basis point (bp) is 0.01 percentage point, so a 25 bp cut lowers the repo rate by 0.25%. The Monetary Policy Committee meets about every two months; meetings that leave the rate unchanged are not listed.
| Effective date | Decision | Change | Repo rate |
|---|---|---|---|
| After 23 Jul 2026 (shown on RBI website 17 Oct 2026) | Hike | ▲ +25 bp | 5.50% |
| 5 Dec 2025 | Cut | ▼ -25 bp | 5.25% |
| 6 Jun 2025 | Cut | ▼ -50 bp | 5.50% |
| 9 Apr 2025 | Cut | ▼ -25 bp | 6.00% |
| 7 Feb 2025 | Cut | ▼ -25 bp | 6.25% |
| 8 Feb 2023 | Hike | ▲ +25 bp | 6.50% |
| 7 Dec 2022 | Hike | ▲ +35 bp | 6.25% |
| 30 Sep 2022 | Hike | ▲ +50 bp | 5.90% |
| 5 Aug 2022 | Hike | ▲ +50 bp | 5.40% |
| 8 Jun 2022 | Hike | ▲ +50 bp | 4.90% |
| 4 May 2022 | Hike | ▲ +40 bp | 4.40% |
| 22 May 2020 | Cut | ▼ -40 bp | 4.00% |
| 27 Mar 2020 | Cut | ▼ -75 bp | 4.40% |
| 5 Oct 2019 | Cut | ▼ -25 bp | 5.15% |
| 8 Aug 2019 | Cut | ▼ -35 bp | 5.40% |
| 7 Jun 2019 | Cut | ▼ -25 bp | 5.75% |
| 4 Apr 2019 | Cut | ▼ -25 bp | 6.00% |
| 8 Feb 2019 | Cut | ▼ -25 bp | 6.25% |
| 1 Aug 2018 | Hike | ▲ +25 bp | 6.50% |
| 6 Jun 2018 | Hike | ▲ +25 bp | 6.25% |
| 2 Aug 2017 | Cut | ▼ -25 bp | 6.00% |
| 4 Oct 2016 | Cut | ▼ -25 bp | 6.25% |
| 5 Apr 2016 | Cut | ▼ -25 bp | 6.50% |
| 29 Sep 2015 | Cut | ▼ -50 bp | 6.75% |
| 2 Jun 2015 | Cut | ▼ -25 bp | 7.25% |
Interest Rate — India vs Peers
Latest available reading for each economy (periods may differ). India highlighted.
More India indicators
Understanding Interest Rate — a simple guide
What it measures
The central bank’s main policy rate — the rate at which it lends to, or pays, commercial banks. It anchors short-term borrowing costs across the economy.
How it is calculated
This is not calculated from a formula — it is decided by the central bank’s monetary policy committee at scheduled meetings. The figure shown is the official policy rate at the end of each month.
If the central bank raises its policy rate from 6.0% to 6.5%, banks usually raise their loan and deposit rates soon after, making home loans and business borrowing more expensive.
A higher policy rate makes borrowing costlier. Central banks usually raise rates to bring down high inflation. Higher rates can slow spending and investment.
A lower policy rate makes borrowing cheaper and is usually used to support growth when the economy is weak or inflation is low.
Why it matters for the economy and markets
Policy rates influence loan and deposit rates, bond yields, currency values and the discount rate investors apply to future earnings. Changes are among the most closely watched events in financial markets.
How to read it
Look at the direction and pace of changes as well as the level. Comparing the policy rate with inflation gives the “real” rate: a policy rate above inflation is generally considered restrictive, below it accommodative.
What to look at alongside it
Inflation (to calculate the real interest rate), bond yields, currency movements and bank lending growth.
Key terms
- Repo rate
- The rate at which a central bank lends short-term money to commercial banks (India’s policy rate).
- Rate hike / cut
- An increase / decrease in the policy rate.
- Real interest rate
- The policy rate minus inflation.
- Basis point (bp)
- One hundredth of a percentage point — 25 bp = 0.25%.
Data source
Reserve Bank of India (RBI) / BIS (series BIS WS_CBPOL + RBI website), monthly data from Jan 1990 to Oct 2026. Values are shown exactly as published by the source and may be revised later.
How to use the chart
Use the 5Y / 10Y / 25Y / Max buttons to change the time range, or drag the slider under the chart. Hover (or tap) on the line to see the exact value for any period. Dashed lines and hatched bars are IMF projections, not actual data. The “Download CSV” button gives you the full data series.
Frequently asked questions
What is the current interest rate of India?
What is the highest and lowest interest rate of India?
What does interest rate measure?
Data are sourced from official international organisations (IMF, World Bank, BIS) and national authorities, and are shown for educational and informational purposes only. They are not investment advice and no recommendation is made. Figures may be revised by the source; IMF figures for the current and future years are projections. This page was last updated on Saturday, October 17, 2026.