Israel Real Interest Rate
Real interest rate FR.INR.RINR
Israel's real interest rate was -3.96% in 2025, ranked 83rd globally. This represents a 110.2% decrease from 2024. Data from World Bank, covering 2013–2025.
Overview
Israel's real interest rate stood at -3.96% in 2025, a decline of +2.08pp from 2022. Based on recent trends, this figure is projected to reach -3.96% by 2025. Israel ranked 83rd globally.
Israel’s real interest rate has swung dramatically over the eleven‑year span from 2013 to 2025, moving from a modest 2.50 % at the start of the series to an all‑time trough of –3.96 % in 2025, the lowest level among 83 economies surveyed. The peak of 3.49 % was recorded in 2017, reflecting a period of relatively tighter monetary conditions before the subsequent descent into negative territory that began in the late 2010s. By 2025 Israel ranks 83rd globally, with its real rate slightly less negative than Bosnia and Herzegovina (‑3.79 %) and marginally above Aruba (‑4.09 %). The prolonged negative real rate environment suggests that inflation has outpaced nominal policy rates, a stance often adopted to stimulate demand during sluggish growth phases. Should inflationary pressures ease or fiscal consolidation tighten, the Bank of Israel may be compelled to raise nominal rates, potentially nudging the real rate back toward the positive range observed in the mid‑2010s.
Data & projection
| Year | Real Interest Rate | YoY change | Rank |
|---|---|---|---|
| 2025* trend | -3.96% | - | - |
| 2025 | -3.96% | −2.08pp | #83 |
| 2022 | -1.88% | −2.67pp | #33 |
| 2021 | 0.79% | −1.44pp | #47 |
| 2020 | 2.23% | +0.64pp | #21 |
| 2019 | 1.59% | −1.19pp | #16 |
| 2018 | 2.77% | −0.72pp | #40 |
| 2017 | 3.49% | +0.43pp | #56 |
| 2016 | 3.06% | +1.99pp | #31 |
| 2015 | 1.07% | −2.03pp | #15 |
| 2014 | 3.11% | +0.61pp | #28 |
| 2013 | 2.50% | – | #24 |
Detected Pattern
Analysis
Israel matched the Export Boom Cycle pattern in 2021. 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
Israel's real interest rate was -3.96% in 2025. Ranked 83rd globally. This represents a 110.2% decrease from the previous year.
Israel's real interest rate peaked at 3.49% in 2017.
The lowest real interest rate in Israel was -3.96% in 2025.
Israel ranks 83rd globally in real interest rate as of 2025.
The World Bank indicator code is FR.INR.RINR. Data sourced from World Bank.
Israel's real interest rate is projected to reach -3.96% by 2025 based on trend extrapolation.
The real interest rate of Israel in 2025 was -3.96%. This ranks 83rd in the world.
Cite this page
@misc{historysaid_israel_real-interest-rate,
title = {Israel Real Interest Rate},
url = {https://historysaid.com/israel/real-interest-rate/},
publisher = {HistorySaid},
year = {2026}
}