Rates Around the World

America’s short-term interest rates of 3.5% to 3.75% might seem a bit high—until you compare them to the 37% rate that Turkish companies and citizens are expected to pay—due, of course, to that country’s extraordinarily high inflation rate. Argentinians are currently paying off short-term loans at a 29% rate. Russians, whose economy is experiencing a number of challenges currently, pay 15%.

Australia, Saudi Arabia, Indonesia, India, Mexico, South Africa and Brazil all have higher interest rate regimes than the U.S. But the Eurozone (2.15%) is lower, as is Canada (2.25%) and China (3%). If you’re looking for the kind of rates that the Trump administration would like to see, consider Japan (0.75%) or, perhaps, Switzerland, whose short-term rates are essentially 0%.

In most countries, the interest rates are closely-aligned with their inflation rate. Turkey’s rate is now above 31%; Argentina’s tops 33%. Russia is an exception; the official inflation rate is 5.9%, but there money is very tight. Switzerland, the land of 0% interest rates, has an inflation rate, currently, of just 0.1% a year.