Countries with the highest interest rates

Interest rates are one of the clearest signals of an economy’s health. Set by central banks, they influence nearly every part of daily life. From the cost of home loans and business credit to the price of everyday goods and even the value of a country’s currency, all aspects of a nation’s finances depend on interest rates. When inflation surges or a currency weakens, countries often face a difficult but necessary choice. It is to raise interest rates.

Though painful in the short term because it leads to slow growth, raising costs, and strained households, the move is intended to cool down inflation, restore stability, and rebuild faith in the economy. In times of economic turmoil, high interest rates become a tool of last resort to prevent further collapse. This gallery highlights countries with the highest interest rates and issues they face in today’s times. Want to know which countries feature in the list? Click on to find out.

Mexico

The Mexican economy is significantly influenced by global situations and the US economy. Uncertain trade policies and tariffs have had a critical impact on the country’s financial condition.

As a result, Mexico’s central bank has increased the interest rates, which now stand at 8.5%. High interest rates attract foreign investment in Mexican assets, strengthening the currency and lowering inflation rates.

Colombia

Colombia has experienced high inflation, with prices of food, fuel, and goods rising every year. With the currency weakening due to lower exports of Colombian oil in the past few years, raising interest rates have mitigated the situation.

Pakistan

Over the years, Pakistan’s economy has experienced immense turmoil and high inflation, prompting the central bank to hike interest rates. Although not extreme, it is still high compared to most economies. Currently, it stands at 11%.

Pakistan has had to rely on the International Monetary Fund (IMF) and the World Bank for financial assistance. This increased the supply of money, leading to inflation and rising debt. Increasing interest rates is a way to combat these issues.

Brazil

Brazil has struggled with high inflation, especially since COVID-19 emerged. Even before the pandemic began, the country experienced several economic issues, and financial institutions were forced to implement strict measures.

Ukraine

Ukraine has high interest rates because it is trying to fight inflation and currency devaluation and stabilize its economy during the war with Russia. As of 2025, the interest rates are at 15.5%.

Russia

Interest rates in Russia are high compared to many developed economies in the world, at about 21%. Sanctions and unchecked spending have led to an increase in inflation rates in recent years.

Iran

Iran has been under economic sanctions for many years. This has limited its access to international markets and, consequently, led to over-reliance on the domestic banking system. 

Egypt

Egypt has seen high inflation over the years, with prices of food, fuel, and other goods increasing steadily. Egypt’s central bank has used high interest rates to lower demand and spending and promote savings.

Nigeria

Like many countries that have suffered the consequences of disastrous policies, Nigeria has experienced severe inflation and devaluation of currency in the past few years. The central bank is faced with the difficult task of undoing years of economic mismanagement.

Argentina

Argentina has experienced some of the highest inflation rates in the world, with figures exceeding 100% in some years. To counteract this, the central bank has raised interest rates aggressively. Currently, it is 29%.

Zimbabwe

Zimbabwe has historically maintained high interest rates. As of 2025, it is at 35%. The currency has repeatedly undergone devaluation, while increased interest rates have been used as a measure to reduce excess currency availability.

Turkey

Turkey’s high interest rates have primarily been a response to the severe ongoing state of inflation. In the past few years, high inflation has eroded the currency’s purchasing power, and hence, the enforced interest rates are an attempt to provide real returns.

Venezuela

Venezuela has the highest interest rates in the world, at a staggering 59%. Factors such as monetary instability, chronic inflation, and resource mismanagement have drastically affected the country’s economic system.