Interest rates are a hot topic in 2025, with major economies navigating inflationary pressures and the loosening end of their monetary policy cycles.
Real interest rates, calculated by subtracting inflation from nominal policy rates, can show the true incentive to spend or save.
When real interest rates are low, businesses borrow more and consumers spend more, boosting economic activity. By contrast, high real rates incentivize saving and tighten financial conditions.
This infographic uses data from the IMF’s World Economic Outlook for April 2025 to highlight the current state of real interest rates across major economies. Australia’s adjusted interest rate sits at 1.50%.
Financial Lifestyle Partners and its advisers are Authorised Representatives of Fortnum Private Wealth Ltd.
ABN 54 139 889 535, AFSL 357306. http://fortnum.com.au
Any information on this website is general advice only and does not take into account any person's objectives, financial situation or needs. Please consider your own circumstances and consider whether the advice is right for you before making a decision.
Always obtain a Product Disclosure Statement (If applicable) to understand the full implications and risks relating to the product and consider the Statement before making any decision about whether to acquire the financial product. PrivacyPolicy
