Charted: Real Interest Rates by Country in 2025
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Interest rates are a hot topic in 2025, with major economies navigating inflationary pressures and the loosening end of their monetary policy cycles.
Real interest rates, calculated by subtracting inflation from nominal policy rates, can show the true incentive to spend or save.
When real interest rates are low, businesses borrow more and consumers spend more, boosting economic activity. By contrast, high real rates incentivize saving and tighten financial conditions.
This infographic uses data from the IMF’s World Economic Outlook for April 2025 to highlight the current state of real interest rates across major economies.
Which Countries Have the Highest Real Interest Rates?
Real rates vary globally, with some countries sticking to high rates while others have near-zero and even negative real interest rates.
Here’s a look at real interest rates across 16 major economies in 2025:
| Country | Real Interest Rate (%) |
|---|---|
Russia  |
14.5% |
Brazil  |
9.2% |
Mexico  |
5.3% |
South Africa  |
3.6% |
Indonesia  |
3.5% |
United States  |
1.5% |
India  |
1.5% |
Australia  |
1.5% |
France  |
1.2% |
China  |
0.8% |
Italy  |
0.8% |
South Korea  |
0.8% |
United Kingdom  |
0.6% |
Germany  |
0.5% |
Canada  |
0.5% |
Japan  |
-2.1% |
Russia tops the list with a real interest rate of 14.5%, with the central bank raising interest rates to combat persistent high inflation, the country’s main economic challenge.
In the Americas, Brazil and Mexico also maintain high real interest rates at 9.2% and 5.3%, respectively, although inflation has cooled off significantly from 2022 highs in both countries.
Meanwhile, the U.S. real rate stands at 1.5% with inflation above the Fed’s 2% target. The Fed funds rate, considered the country’s nominal interest rate, remains close to decade-highs at 4.3% as of May 2025.
Japan is the only country with a negative real interest rate of -2.1%. However, it’s worth noting that the Bank of Japan recently raised interest rates to the highest level since 2008, after ending its nominal (not adjusted for inflation) negative interest rate regime in 2024.
How Will Global Interest Rates Change in 2025?
As inflation cools off globally, the IMF projects that advanced economies will cut interest rates toward the end of 2025.
The U.S. federal funds rate is projected to be down to 4% by the end of the year, although the Fed kept rates steady in March amid volatility from Trump’s latest tariffs. The euro area is expected to cut rates down to 2% by mid-2025, from around 2.4% in April.
Meanwhile, the IMF projects that Japan’s interest rates will continue increasing as the country looks to cut inflation down to its 2% target, although the U.S. tariffs are expected to delay its progress.
Learn More on the Voronoi App 
High interest rates have a significant impact on the public debt burdens of economies. See this infographic on the state of Government Debt Around the World, on the Voronoi app.