Policy interest rates in the U.S. and Europe are forecasted to decrease gradually between 2024 and 2027, following exceptional increases triggered by soaring inflation between 2021 and 2023. The U.S. federal funds rate stood at **** percent at the end of 2023, the European Central Bank deposit rate at **** percent, and the Swiss National Bank policy rate at **** percent. With inflationary pressures stabilizing, policy interest rates are forecast to decrease in each observed region. The U.S. federal funds rate is expected to decrease to *** percent, the ECB refi rate to **** percent, the Bank of England bank rate to **** percent, and the Swiss National Bank policy rate to **** percent by 2025. An interesting aspect to note is the impact of these interest rate changes on various economic factors such as growth, employment, and inflation. The impact of central bank policy rates The U.S. federal funds effective rate, crucial in determining the interest rate paid by depository institutions, experienced drastic changes in response to the COVID-19 pandemic. The subsequent slight changes in the effective rate reflected the efforts to stimulate the economy and manage economic factors such as inflation. Such fluctuations in the federal funds rate have had a significant impact on the overall economy. The European Central Bank's decision to cut its fixed interest rate in June 2024 for the first time since 2016 marked a significant shift in attitude towards economic conditions. The reasons behind the fluctuations in the ECB's interest rate reflect its mandate to ensure price stability and manage inflation, shedding light on the complex interplay between interest rates and economic factors. Inflation and real interest rates The relationship between inflation and interest rates is critical in understanding the actions of central banks. Central banks' efforts to manage inflation through interest rate adjustments reveal the intricate balance between economic growth and inflation. Additionally, the concept of real interest rates, adjusted for inflation, provides valuable insights into the impact of inflation on the economy.

Norway NO: Short-Term Interest Rate: Single Hit Scenario data was reported at 0.343 % in 2021. This records a decrease from the previous number of 0.672 % for 2020. Norway NO: Short-Term Interest Rate: Single Hit Scenario data is updated yearly, averaging 6.827 % from Dec 1970 (Median) to 2021, with 52 observations. The data reached an all-time high of 15.367 % in 1982 and a record low of 0.343 % in 2021. Norway NO: Short-Term Interest Rate: Single Hit Scenario data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s Norway – Table NO.OECD.EO: Interest Rate: Forecast: OECD Member: Annual. IRS - Short-term interest rate Short-term interest:https://stats.oecd.org/glossary/detail.asp?ID=1394; 3-month NIBOR rate (euro-kroner interest rates based on monthly averages of quoted daily selling rates for five big banks)

The benchmark interest rate in the United States was last recorded at 4.50 percent. This dataset provides the latest reported value for - United States Fed Funds Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

Indonesia ID: Short-Term Interest Rate: Double Hit Scenario data was reported at 5.630 % in Dec 2021. This stayed constant from the previous number of 5.630 % for Sep 2021. Indonesia ID: Short-Term Interest Rate: Double Hit Scenario data is updated quarterly, averaging 9.198 % from Mar 1990 (Median) to Dec 2021, with 128 observations. The data reached an all-time high of 52.320 % in Dec 1998 and a record low of 5.630 % in Dec 2021. Indonesia ID: Short-Term Interest Rate: Double Hit Scenario data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s Indonesia – Table ID.OECD.EO: Interest Rate: Forecast: Non OECD Member: Quarterly. IRS - Short-term interest rate Short-term interest:https://stats.oecd.org/glossary/detail.asp?ID=1394; Interest Rate of Time Deposits in Rupiah by Group of Banks , Commercial banks, 3-months

This statistic shows the policy rate set by Norges Bank of Norway from 2011 with a forecast until 2021. The policy rate set by Norges Bank has followed the global trend of low interest rates, standing at *** percent in 2016. The policy rate is forecasted to increase from 2017 onwards, reaching **** percent in 2021.

The benchmark interest rate in Japan was last recorded at 0.50 percent. This dataset provides - Japan Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

The benchmark interest rate in Canada was last recorded at 2.75 percent. This dataset provides - Canada Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

The benchmark interest rate in China was last recorded at 3 percent. This dataset provides the latest reported value for - China Interest Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

Lending interest rate (%) in United States was reported at 3.25 % in 2021, according to the World Bank collection of development indicators, compiled from officially recognized sources. United States - Lending interest rate - actual values, historical data, forecasts and projections were sourced from the World Bank on July of 2025.

The benchmark interest rate in Australia was last recorded at 3.85 percent. This dataset provides - Australia Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

This statistic shows the policy rate set by Bank of Sweden from 2011 with a forecast until 2021. The policy rate has followed the global trend of low interest rates, standing at **** in 2016. The policy rate is forecasted to start increasing in 2017 and reach **** percent in 2021.

Japan JP: Short-Term Interest Rate: Double Hit Scenario data was reported at -0.092 % in 2021. This stayed constant from the previous number of -0.092 % for 2020. Japan JP: Short-Term Interest Rate: Double Hit Scenario data is updated yearly, averaging 1.228 % from Dec 1969 (Median) to 2021, with 53 observations. The data reached an all-time high of 14.512 % in 1974 and a record low of -0.092 % in 2021. Japan JP: Short-Term Interest Rate: Double Hit Scenario data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s Japan – Table JP.OECD.EO: Interest Rate: Forecast: OECD Member: Annual. IRS - Short-term interest rate Short-term interest:https://stats.oecd.org/glossary/detail.asp?ID=1394; Japan interbank 3 mth (LDN:BBA) - offered rate. Available from 1986 onwards.

This statistic shows the policy rate set by Central Bank of Denmark from 2011 with a forecast until 2021. The policy rate has followed the global trend of low interest rates, standing at *** in 2015. The policy rate is forecasted to increase from 2019 onwards, reaching *** percent in 2021.

The benchmark interest rate in Nicaragua was last recorded at 6.25 percent. This dataset provides - Nicaragua Interest Rate- actual values, historical data, forecast, chart, statistics, economic calendar and news.

The benchmark interest rate in Iceland was last recorded at 7.50 percent. This dataset provides - Iceland Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

The benchmark interest rate in Norway was last recorded at 4.25 percent. This dataset provides the latest reported value for - Norway Interest Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

The benchmark interest rate in Brazil was last recorded at 15 percent. This dataset provides - Brazil Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

The benchmark interest rate in Russia was last recorded at 20 percent. This dataset provides the latest reported value for - Russia Interest Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

Deposit Interest Rate in San Marino decreased to 0.93 percent in 2021 from 1.13 percent in 2020. This dataset includes a chart with historical data for Deposit Interest Rate in San Marino.

Deposit Interest Rate in Micronesia decreased to 0.04 percent in 2021 from 0.07 percent in 2020. This dataset includes a chart with historical data for Deposit Interest Rate in Micronesia.