Real interest rates describe the growth in the real value of the interest on a loan or deposit, adjusted for inflation. Nominal interest rates on the other hand show us the raw interest rate, which is unadjusted for inflation. If the inflation rate in a certain country were zero percent, the real and nominal interest rates would be the same number. As inflation reduces the real value of a loan, however, a positive inflation rate will mean that the nominal interest rate is more likely to be greater than the real interest rate. We can see this in the recent inflationary episode which has taken place in the wake of the Coronavirus pandemic, with nominal interest rates rising over the course of 2022, but still lagging far behind the rate of inflation, meaning these rate rises register as smaller increases in the real interest rate.

Graph and download economic data for 1-Year Real Interest Rate (REAINTRATREARAT1YE) from Jan 1982 to Jun 2025 about 1-year, interest rate, interest, real, rate, and USA.

The Federal Reserve Bank of Cleveland estimates the expected rate of inflation over the next 30 years along with the inflation risk premium, the real risk premium, and the real interest rate.

Their estimates are calculated with a model that uses Treasury yields, inflation data, inflation swaps, and survey-based measures of inflation expectations.

For more information, please visit the "https://www.clevelandfed.org/indicators-and-data/inflation-expectations#background">Federal Reserve Bank of Cleveland.

Graph and download economic data for 10-Year Real Interest Rate (REAINTRATREARAT10Y) from Jan 1982 to Jun 2025 about 10-year, interest rate, interest, real, rate, and USA.

The Federal Reserve Bank of Cleveland estimates the expected rate of inflation over the next 30 years along with the inflation risk premium, the real risk premium, and the real interest rate.

Their estimates are calculated with a model that uses Treasury yields, inflation data, inflation swaps, and survey-based measures of inflation expectations.

For more information, please visit the "https://www.clevelandfed.org/indicators-and-data/inflation-expectations#background">Federal Reserve Bank of Cleveland.

The Federal Reserve Bank of Cleveland estimates the expected rate of inflation over the next 30 years along with the inflation risk premium, the real risk premium, and the real interest rate.

Their estimates are calculated with a model that uses Treasury yields, inflation data, inflation swaps, and survey-based measures of inflation expectations.

For more information, please visit the "https://www.clevelandfed.org/indicators-and-data/inflation-expectations#background">Federal Reserve Bank of Cleveland.

Graph and download economic data for 1-Month Real Interest Rate (REAINTRATREARAT1MO) from Jan 1982 to Jun 2025 about 1-month, interest rate, interest, real, rate, and USA.

Costa Rica CR: Real Interest Rate data was reported at 9.193 % pa in 2023. This records an increase from the previous number of 1.017 % pa for 2022. Costa Rica CR: Real Interest Rate data is updated yearly, averaging 9.164 % pa from Dec 1982 (Median) to 2023, with 42 observations. The data reached an all-time high of 17.735 % pa in 1993 and a record low of -32.129 % pa in 1982. Costa Rica CR: Real Interest Rate data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Costa Rica – Table CR.World Bank.WDI: Interest Rates. Real interest rate is the lending interest rate adjusted for inflation as measured by the GDP deflator. The terms and conditions attached to lending rates differ by country, however, limiting their comparability.;International Monetary Fund, International Financial Statistics and data files using World Bank data on the GDP deflator.;;

Shows the daily level of the federal funds rate back to 1954. The fed funds rate is the interest rate at which depository institutions (banks and credit unions) lend reserve balances to other depository institutions overnight, on an uncollateralized basis. The Federal Open Market Committee (FOMC) meets eight times a year to determine the federal funds target rate.

Deposit Interest Rate in Honduras increased to 8.21 percent in 2024 from 5.94 percent in 2023. This dataset includes a chart with historical data for Deposit Interest Rate in Honduras.

Graph and download economic data for Interest Rates: 3-Month or 90-Day Rates and Yields: Interbank Rates: Total for Netherlands (IR3TIB01NLM156N) from Jan 1982 to May 2025 about Netherlands, interbank, 3-month, yield, interest rate, interest, and rate.

Costa Rica CR: Interest Rate Spread data was reported at 4.022 % pa in 2023. This records a decrease from the previous number of 4.289 % pa for 2022. Costa Rica CR: Interest Rate Spread data is updated yearly, averaging 11.468 % pa from Dec 1982 (Median) to 2023, with 42 observations. The data reached an all-time high of 15.303 % pa in 1994 and a record low of 3.500 % pa in 1984. Costa Rica CR: Interest Rate Spread data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Costa Rica – Table CR.World Bank.WDI: Interest Rates. Interest rate spread is the interest rate charged by banks on loans to private sector customers minus the interest rate paid by commercial or similar banks for demand, time, or savings deposits. The terms and conditions attached to these rates differ by country, however, limiting their comparability.;International Monetary Fund, International Financial Statistics and data files.;Median;

Deposit Interest Rate in Bhutan increased to 4.50 percent in 2024 from 3.75 percent in 2023. This dataset includes a chart with historical data for Deposit Interest Rate in Bhutan.

Deposit Interest Rate in Costa Rica decreased to 3.69 percent in 2024 from 5.07 percent in 2023. This dataset includes a chart with historical data for Deposit Interest Rate in Costa Rica.

Graph and download economic data for Interest Rates: 3-Month or 90-Day Rates and Yields: Interbank Rates: Total for Netherlands (IR3TIB01NLQ156N) from Q1 1982 to Q1 2025 about Netherlands, interbank, 3-month, yield, interest rate, interest, and rate.

The Volcker Shock was a period of historically high interest rates precipitated by Federal Reserve Chairperson Paul Volcker's decision to raise the central bank's key interest rate, the Fed funds effective rate, during the first three years of his term. Volcker was appointed chairperson of the Fed in August 1979 by President Jimmy Carter, as replacement for William Miller, who Carter had made his treasury secretary. Volcker was one of the most hawkish (supportive of tighter monetary policy to stem inflation) members of the Federal Reserve's committee, and quickly set about changing the course of monetary policy in the U.S. in order to quell inflation. The Volcker Shock is remembered for bringing an end to over a decade of high inflation in the United States, prompting a deep recession and high unemployment, and for spurring on debt defaults among developing countries in Latin America who had borrowed in U.S. dollars.

Monetary tightening and the recessions of the early '80s

Beginning in October 1979, Volcker's Fed tightened monetary policy by raising interest rates. This decision had the effect of depressing demand and slowing down the U.S. economy, as credit became more expensive for households and businesses. The Fed funds rate, the key overnight rate at which banks lend their excess reserves to each other, rose as high as 17.6 percent in early 1980. The rate was allowed to fall back below 10 percent following this first peak, however, due to worries that inflation was not falling fast enough, a second cycle of monetary tightening was embarked upon starting in August of 1980. The rate would reach its all-time peak in June of 1981, at 19.1 percent. The second recession sparked by these hikes was far deeper than the 1980 recession, with unemployment peaking at 10.8 percent in December 1980, the highest level since The Great Depression. This recession would drive inflation to a low point during Volcker's terms of 2.5 percent in August 1983.

The legacy of the Volcker Shock

By the end of Volcker's terms as Fed Chair, inflation was at a manageable rate of around four percent, while unemployment had fallen under six percent, as the economy grew and business confidence returned. While supporters of Volcker's actions point to these numbers as proof of the efficacy of his actions, critics have claimed that there were less harmful ways that inflation could have been brought under control. The recessions of the early 1980s are cited as accelerating deindustrialization in the U.S., as manufacturing jobs lost in 'rust belt' states such as Michigan, Ohio, and Pennsylvania never returned during the years of recovery. The Volcker Shock was also a driving factor behind the Latin American debt crises of the 1980s, as governments in the region defaulted on debts which they had incurred in U.S. dollars. Debates about the validity of using interest rate hikes to get inflation under control have recently re-emerged due to the inflationary pressures facing the U.S. following the Coronavirus pandemic and the Federal Reserve's subsequent decision to embark on a course of monetary tightening.

Lebanon: Interest rates on bank credit to the private sector: The latest value from 2019 is 10.51 percent, an increase from 9.1 percent in 2018. In comparison, the world average is 11.43 percent, based on data from 114 countries. Historically, the average for Lebanon from 1982 to 2019 is 18.26 percent. The minimum value, 7.09 percent, was reached in 2015 while the maximum of 44.46 percent was recorded in 1988.

Saint Vincent and the Grenadines: Bank lending-deposit interest rate spread : The latest value from 2020 is 6.26 interest rate points, a decline from 6.55 interest rate points in 2019. In comparison, the world average is 6.59 interest rate points, based on data from 93 countries. Historically, the average for Saint Vincent and the Grenadines from 1982 to 2020 is 6.58 interest rate points. The minimum value, 3.88 interest rate points, was reached in 1983 while the maximum of 8.03 interest rate points was recorded in 1993.

Bhutan: Interest rates on bank credit to the private sector: The latest value from 2023 is 14 percent, unchanged from 14 percent in 2022. In comparison, the world average is 14.19 percent, based on data from 83 countries. Historically, the average for Bhutan from 1982 to 2023 is 14.89 percent. The minimum value, 13.75 percent, was reached in 2009 while the maximum of 17 percent was recorded in 1992.

Interbank Rate in Hong Kong decreased to 1.68 percent on Monday June 30 from 1.71 in the previous day. This dataset provides - Hong Kong Three Month Interbank Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.