Real interest rate | United Kingdom

The Real interest year-end rate of United Kingdom in 2024 was 4.75%. The end-2023 rate was  5.25%. This is the first year of decline after a period of growth. The lowest real interest rate in United Kingdom was recorded in 2021, with a value of  0.10%. The highest rate was in 1979, when it achieved 17.00%. Real Interest Rate ≈ Nominal Interest Rate - Inflation Rate. If the nominal interest rate on a loan is 9%, and inflation is 6%, the real interest rate is 3%. This means the lender effectively gains 3% in purchasing power, while the borrower pays 3% in real terms.