Iceland Real Interest Rate
Real interest rate FR.INR.RINR
Iceland's real interest rate was 7.12% in 2025, ranked 22nd globally. This represents a 17.3% increase from 2024. Data from World Bank, covering 1982–2025.
Overview
Iceland's real interest rate stood at 7.12% in 2025, a rise of +1.05pp from 2024. Based on recent trends, this figure is projected to reach 7.12% by 2025. Iceland ranked 22nd globally.
Iceland's real interest rate has exhibited significant fluctuations over the past four decades, reflecting the country's unique economic dynamics. At its lowest point in 1983, the real interest rate stood at -19.49%, indicating a period of high inflation and economic instability. By contrast, the rate peaked in 2007 at 14.37%, a level surpassed only by a few countries, including Brunei Darussalam, which achieved a rate of 7.90% in 2025, ranking similarly to Iceland's 7.12%. The World Bank data reveals a general upward trend in the real interest rate since the 1980s, with the exception of a brief decrease in the early 2010s. With a coverage of 44 years, Iceland's experience highlights the importance of monetary policy in managing inflation and stabilizing the economy. A further tightening of monetary policy or an increase in inflation expectations could potentially alter the trajectory of Iceland's real interest rate, pushing it even higher.
Data & projection
| Year | Real Interest Rate | YoY change | Rank |
|---|---|---|---|
| 2027* trend | 10.33% | - | - |
| 2026* trend | 8.73% | - | - |
| 2025* trend | 7.12% | - | - |
| 2025 | 7.12% | +1.05pp | #22 |
| 2024 | 6.07% | +0.14pp | #42 |
| 2023 | 5.93% | +7.06pp | #58 |
| 2022 | -1.13% | −0.43pp | #37 |
| 2021 | -0.70% | −2.06pp | #36 |
| 2020 | 1.36% | −0.66pp | #17 |
| 2019 | 2.02% | −1.72pp | #18 |
| 2018 | 3.73% | −1.86pp | #51 |
| 2017 | 5.59% | +0.20pp | #75 |
| 2016 | 5.39% | +4.59pp | #59 |
| 2015 | 0.80% | −2.58pp | #14 |
| 2014 | 3.39% | −2.13pp | #31 |
| 2013 | 5.52% | +0.87pp | #61 |
| 2012 | 4.65% | +0.55pp | #60 |
| 2011 | 4.10% | +0.63pp | #68 |
Detected Pattern
Analysis
Iceland matched the Export Boom Cycle pattern in 2016. Historically, 71% of countries showing this pattern (546 out of 768) saw real interest rate improve within 24 months. View full analysis →
Frequently Asked Questions
Iceland's real interest rate was 7.12% in 2025. Ranked 22nd globally. This represents a 17.3% increase from the previous year.
Iceland's real interest rate peaked at 14.37% in 2007.
The lowest real interest rate in Iceland was -19.49% in 1983.
Iceland ranks 22nd globally in real interest rate as of 2025.
The World Bank indicator code is FR.INR.RINR. Data sourced from World Bank.
Iceland's real interest rate is projected to reach 7.12% by 2025 based on trend extrapolation.
The real interest rate of Iceland in 2025 was 7.12%. This ranks 22nd in the world.
Cite this page
@misc{historysaid_iceland_real-interest-rate,
title = {Iceland Real Interest Rate},
url = {https://historysaid.com/iceland/real-interest-rate/},
publisher = {HistorySaid},
year = {2026}
}