India's natural rate of interest now at 1.4%-1.9%, says RBI bulletin

The RBI said, “The estimate of the natural rate for Q4 2023-24 is at 1.4-1.9% as compared with our earlier estimate of 0.8-1.0% for Q3 2021-22.”

Updated on: Jul 18, 2024, 17:24:28 IST

By HT News Desk

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India's natural rate of interest has moved higher in the post-pandemic era, driven by the growth of potential output, the Reserve Bank of India said in its monthly bulletin. The RBI said, “The estimate of the natural rate for Q4 2023-24 is at 1.4-1.9% as compared with our earlier estimate of 0.8-1.0% for Q3 2021-22.”

Reserve Bank of India (RBI) Governor Shaktikanta Das is seen. (PTI)

The natural rate of interest is an equilibrium rate where growth is close to potential, alongside stable inflation.

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