Real interest rate in Iceland
Iceland: Real interest rate was 3.9% in 2025. ◆ Volatile
Real interest rate in Iceland, 1982–2025
Source: International Financial Statistics database, International Monetary Fund (IMF). Measured in %.
Analysis
The most recent figure for real interest rate in Iceland is 3.9%, measured in 2025.
That represents a change of down 35.9% on the previous year and up 381.3% over ten years.
Over the whole period, real interest rate in Iceland peaked at 14.4% in 2007 and was at its lowest, -19.5%, in 1983.
That places Iceland 86th out of 148 countries with data for 2025, putting it in the middle of the range.
The series is highly variable year to year, so single readings are best treated with caution.
Averages by decade
| Decade | Average | Lowest | Highest | Years |
|---|---|---|---|---|
| 1980s | -2.0% | -19.5% | 5.8% | 8 |
| 1990s | 8.3% | 0.9% | 12.1% | 10 |
| 2000s | 9.9% | 7.1% | 14.4% | 10 |
| 2010s | 3.9% | 0.8% | 5.6% | 10 |
| 2020s | 2.5% | -1.1% | 6.0% | 6 |
Countries ranked near Iceland
More financial sector data for Iceland
- Domestic credit to private sector 89.2% (2025)
- Net domestic credit 4.57 trillion current LCU (2025)
- Total reserves in months of imports 5.32 (2025)
- Net foreign assets 397.39 billion current LCU (2025)
- Domestic credit to private sector by banks 89.2% (2025)
- Claims on central government, etc. -3.9% (2025)
- Monetary Sector credit to private sector 89.2% (2025)
- Broad money 67.4% (2024)
- Official exchange rate 128.44 LCU per US$, period average (2025)
- Net migration 2,709 (2025)
Frequently asked questions
- What is real interest rate in Iceland?
- Real interest rate in Iceland was 3.9% in 2025, according to International Financial Statistics database, International Monetary Fund (IMF).
- What is the highest real interest rate recorded in Iceland?
- The highest recorded value was 14.4% in 2007.
- What is the lowest real interest rate recorded in Iceland?
- The lowest recorded value was -19.5% in 1983.
- How does Iceland rank for real interest rate?
- Iceland ranks 86th out of 148 countries with data for 2025.
- Is real interest rate rising or falling in Iceland?
- Over the last ten years it is up 381.3%. The long-run trend across the full record is volatile.
- Where does this Iceland data come from?
- The figures come from International Financial Statistics database, International Monetary Fund (IMF), published as part of Real interest rate (%). Statizoid updates them automatically from the source API.
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About this data
An interest rate is the amount charged, expressed as a percentage of the principal over a period of time, by the owners of certain kinds of financial assets for putting the financial assets at the disposal of another institutional unit. The 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. This indicator is expressed as a percentage (a÷b)*100.