Financial Report Insights

India interest rate

Reserve Bank of India

Policy rate
5.25%
Jun 2026
Last move
−0.25 pt
Dec 2025
Inflation
4.4%
Jul 2026
10-year bond yield
6.78%
Jul 2026

The policy rate set by the Reserve Bank of India is 5.25% as of Jun 2026. Its most recent move: it cut its rate from 5.50% to 5.25% (Dec 2025). The rate is 0.25 percentage points lower than a year earlier. With consumer prices up 4.4% over the 12 months to Jul 2026, the real rate (policy rate minus inflation) is +0.8%: borrowing costs are above inflation.

Policy rate over the past two years

Jun 2024Jun 2026
Jun 2026: 5.25%

Rate changes

WhenDecisionFromToChange
Dec 2025Cut5.50%5.25%−0.25 pt
Jun 2025Cut6.00%5.50%−0.50 pt
Apr 2025Cut6.25%6.00%−0.25 pt
Feb 2025Cut6.50%6.25%−0.25 pt

Changes between month-end rates. Two decisions in one month show up as a single change.

Inflation (% vs a year earlier)

Jul 2024Jul 2026
Jul 2026: 4.4%

10-year government bond yield

Jan 2026Jul 2026
Jul 2026: 6.78%

Other central banks in Asia

Source: BIS; inflation: IMF CPI; bond yield: OECD. Updated daily. All central bank rates · India economy dashboard

India Interest Rate: 5.25% (Jun 2026) – Reserve Bank of India | Financial Report Insights