Real interest rates
What remains of the policy rate after subtracting the latest annual inflation. A positive real rate means the rate is above price growth; a negative one means it is below. What is the real interest rate?
| Bank | Policy rate | Annual inflation | Real rate |
|---|---|---|---|
| FedUnited States | 3.75–4.00% midpoint 3.875% | 3.4% August 2026 | +0.48% positive |
| ECBEuro area | 2.50% | 3.8% September 2026, flash | −1.30% negative |
| CBRTTürkiye | 37.00% | 29.73% September 2026 | +7.27% positive |
| BoEUnited Kingdom | 3.75% | 3.1% August 2026 | +0.65% positive |
| BoJJapan | 1.25% | 1.9% August 2026 | −0.65% negative |
| RBAAustralia | 4.60% | 4.0% August 2026 | +0.60% positive |
The exact calculation when inflation is high
Method and limits
The real rate here is the policy rate minus the latest published annual consumer inflation (a backward-looking measure). As the Fed announces a range, its midpoint is used. Inflation describes a past month and is published with a lag of days to weeks, while the policy rate is today's level. Central banks often look at expected inflation instead (the forward-looking real rate), which can differ from the figure here.
Deposit and loan rates differ from the policy rate, and taxes and fees are not taken into account. This table is not investment advice.
Inflation sources: BLS (FRED) · Eurostat (ECB Data Portal) · TurkStat (EVDS) · ONS · Statistics Bureau of Japan (e-Stat) · ABS (RBA G4). For the euro area the latest month is usually Eurostat's flash estimate and may be revised.