India Interest Rate – One year Look 2019
The Country’s economy has been slowdown for the past year and a half. The GDP growth has been also come down from 8 Percent (July 2018) to 4.5 Percent now. Inflation has been steadily rising for the past few months due to prices of Vegetable, Milk Products and Pulses.
As per the Past data shown in the Trading Economics website, India’s Inflation was 4.17 Percent in the period of July 2018 and now it is at 4.62 Percent. It was seen as low of 1.97 Percent in January 2019.
The Inflation is likely to raise in the upcoming months. For the past one year, the Bank REPO rate seems pretty low. This favors for the Borrowers and at the same time, it won’t favor for the Fixed Depositors.
The Bank’s REPO rate, which stood at 6.5 Percent in the second half of Last year. Now, it is showing at 5.15 Percent. Till date the Central Bank (RBI) has reduced the REPO rate by 135 Points in one year.
It is noteworthy that the bank (REPO) rate was lowered to 6.25 Percent from 6.5 Percent in February 2019. Then in April 2019, it was said to be 6 Percent from 6.25 Percent. In June this year, the bank rate was reduced further by 25 basis points to 5.75 Percent.
In the August 2019, the bank REPO rate was said to be 5.40 Percent, which was lowered by a maximum of 35 basis points. From the Last Monetary Policy Committee held in this December 2019, there was unchanged in the REPO Rate.
This is the first time in this year that the bank rate was unchanged by the RBI. In the second half of 2019-20 Fiscal year, the estimated inflation is in between 4.7 – 5.1 Percent.
India’s Bank Interest rate has averaged 6.65 Percent over the past 20 years. It was said as highest rate of 14.50 Percent, which was in the August, 2000. The lowest interest rate stood at 4.25 Percent in April 2009.
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