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.

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.

The benchmark interest rate in Sweden was last recorded at 2 percent. This dataset provides the latest reported value for - Sweden Interest Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

More than ************* mortgage loans are projected to be affected by the increasing mortgage interest rates in Canada by 2025. About *********** of these mortgages are projected to be up for renewal in 2024. These loans were taken out at a time when interest rates were much lower, meaning that homeowners will be affected by a notable increase in their monthly payments.

The benchmark interest rate in Mexico was last recorded at 8 percent. This dataset provides - Mexico Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Key Interest Rate: Central Banks data was reported at 23.750 % in 2026. This records a decrease from the previous number of 42.500 % for 2025. Key Interest Rate: Central Banks data is updated yearly, averaging 15.813 % from Dec 2002 (Median) to 2026, with 25 observations. The data reached an all-time high of 50.000 % in 2024 and a record low of 4.750 % in 2013. Key Interest Rate: Central Banks 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 Turkey – Table TR.OECD.EO: Interest Rate: Forecast: OECD Member: Annual.

According to the European Central Bank's survey of professional forecasters, the interest rate on the ECB's main refinancing operations is expected to decrease from *** percent in January 2025 to *** percent in 2026.

Japan Key Interest Rate: Central Banks data was reported at 1.250 % in 2026. This records an increase from the previous number of 0.750 % for 2025. Japan Key Interest Rate: Central Banks data is updated yearly, averaging 0.100 % from Dec 1988 (Median) to 2026, with 39 observations. The data reached an all-time high of 5.625 % in 1990 and a record low of -0.100 % in 2023. Japan Key Interest Rate: Central Banks 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.

The U.S. bank prime loan rate has undergone significant fluctuations over the past three decades, reflecting broader economic trends and monetary policy decisions. From a high of **** percent in 1990, the rate has seen periods of decline, stability, and recent increases. As of May 2025, the prime rate stood at *** percent, marking a notable rise from the historic lows seen in the early 2020s. Federal Reserve's impact on lending rates The prime rate's trajectory closely mirrors changes in the federal funds rate, which serves as a key benchmark for the U.S. financial system. In 2023, the Federal Reserve implemented a series of rate hikes, pushing the federal funds target range to 5.25-5.5 percent by year-end. This aggressive monetary tightening was aimed at combating rising inflation, and its effects rippled through various lending rates, including the prime rate. Long-term investment outlook While short-term rates have risen, long-term investment yields have also seen changes. The 10-year U.S. Treasury bond, a benchmark for long-term interest rates, showed an average market yield of **** percent in the second quarter of 2024, adjusted for constant maturity and inflation. This figure represents a recovery from negative real returns seen in 2021, reflecting shifting expectations for economic growth and inflation. The evolving yield environment has implications for both borrowers and investors, influencing decisions across the financial landscape.

Graph and download economic data for FOMC Summary of Economic Projections for the Fed Funds Rate, Range, Low (FEDTARRL) from 2025 to 2027 about projection, federal, rate, and USA.

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.

Key Interest Rate: Central Banks data was reported at 2.000 % in 2026. This records a decrease from the previous number of 2.375 % for 2025. Key Interest Rate: Central Banks data is updated yearly, averaging 0.719 % from Dec 1999 (Median) to 2026, with 28 observations. The data reached an all-time high of 3.625 % in 2023 and a record low of -0.500 % in 2021. Key Interest Rate: Central Banks 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 Ireland – Table IE.OECD.EO: Interest Rate: Forecast: OECD Member: Annual.

In May 2025, global inflation rates and central bank interest rates showed significant variation across major economies. Most economies initiated interest rate cuts from mid-2024 due to declining inflationary pressures. The U.S., UK, and EU central banks followed a consistent pattern of regular rate reductions throughout late 2024. In early 2025, Russia maintained the highest interest rate at 20 percent, while Japan retained the lowest at 0.5 percent. Varied inflation rates across major economies The inflation landscape varies considerably among major economies. China had the lowest inflation rate at -0.1 percent in May 2025. In contrast, Russia maintained a high inflation rate of 9.9 percent. These figures align with broader trends observed in early 2025, where China had the lowest inflation rate among major developed and emerging economies, while Russia's rate remained the highest. Central bank responses and economic indicators Central banks globally implemented aggressive rate hikes throughout 2022-23 to combat inflation. The European Central Bank exemplified this trend, raising rates from 0 percent in January 2022 to 4.5 percent by September 2023. A coordinated shift among major central banks began in mid-2024, with the ECB, Bank of England, and Federal Reserve initiating rate cuts, with forecasts suggesting further cuts through 2025 and 2026.

Bulgaria was at the top of this ranking of ** European countries sorted by the growth rate of their volume of loans to households in 2023. Loans to households in the European Union and the European Economic Area are expected to grow on average by over ***** percent in 2024. Meanwhile, the loans and advances market in Germany is expected to increase by *** percent in 2024. Overall, the total value of the household loans market in the EU as a whole is expected to keep growing during that timeline.

JP: Short-Term Interest Rate data was reported at 1.321 % in 2026. This records an increase from the previous number of 0.821 % for 2025. JP: Short-Term Interest Rate data is updated yearly, averaging 0.836 % from Dec 1969 (Median) to 2026, with 58 observations. The data reached an all-time high of 14.512 % in 1974 and a record low of 0.060 % in 2017. JP: Short-Term Interest Rate 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; Japan interbank 3 mth (LDN:BBA) - offered rate. Available from 1986 onwards.

Key Interest Rate: Central Banks data was reported at 6.000 % in Dec 2026. This records a decrease from the previous number of 6.250 % for Sep 2026. Key Interest Rate: Central Banks data is updated quarterly, averaging 5.750 % from Jun 2008 (Median) to Dec 2026, with 75 observations. The data reached an all-time high of 11.250 % in Dec 2023 and a record low of 3.000 % in Sep 2015. Key Interest Rate: Central Banks 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 Mexico – Table MX.OECD.EO: Interest Rate: Forecast: OECD Member: Quarterly.

Key Interest Rate: Central Banks data was reported at 2.000 % in 2026. This records a decrease from the previous number of 2.375 % for 2025. Key Interest Rate: Central Banks data is updated yearly, averaging 0.719 % from Dec 1999 (Median) to 2026, with 28 observations. The data reached an all-time high of 3.625 % in 2023 and a record low of -0.500 % in 2021. Key Interest Rate: Central Banks 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 Italy – Table IT.OECD.EO: Interest Rate: Forecast: OECD Member: Annual.

Key information about United States Long Term Interest Rate

• United States Treasury Notes Yield: Constant Maturity: Nominal: 10 Years was reported at 4.45 % pa in Feb 2025, compared with 4.63 % pa in the previous month.
• US Long Term Interest Rate data is updated monthly, available from Apr 1953 to Feb 2025.
• The data reached an all-time high of 15.32 % pa in Sep 1981 and a record low of 0.62 % pa in Jul 2020.
• Long Term Interest Rate is reported by reported by Federal Reserve Board.

CEIC calculates monthly Long Term Interest Rate from daily 10 year Treasury Constant Maturity Yield. The Federal Reserve Board provides 10 year Treasury Constant Maturity Yield. Long Term Interest Rate prior to January 1962 is sourced directly from the Federal Reserve Board.


Related information about United States Long Term Interest Rate

• In the latest reports, US Short Term Interest Rate: Month End: Treasury Bills: 3 Months was reported at 4.20 % pa in Feb 2025.
• The cash rate (Policy Rate: Month End: Effective Federal Funds Rate) was set at 4.33 % pa in Feb 2025.

Key Interest Rate: Central Banks data was reported at 5.000 % in 2026. This records a decrease from the previous number of 5.375 % for 2025. Key Interest Rate: Central Banks data is updated yearly, averaging 5.938 % from Dec 2005 (Median) to 2026, with 22 observations. The data reached an all-time high of 12.750 % in 2005 and a record low of 3.500 % in 2021. Key Interest Rate: Central Banks 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: Annual.

Key Interest Rate: Central Banks data was reported at 1.600 % in 2026. This records a decrease from the previous number of 1.975 % for 2025. Key Interest Rate: Central Banks data is updated yearly, averaging 2.938 % from Dec 1987 (Median) to 2026, with 40 observations. The data reached an all-time high of 9.750 % in 1990 and a record low of -0.525 % in 2021. Key Interest Rate: Central Banks 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 Denmark – Table DK.OECD.EO: Interest Rate: Forecast: OECD Member: Annual.