Real interest rate | Iraq

The Real interest year-end rate of Iraq in 2024 was 5.50%. The end-2023 rate was  7.50%. This is the first year of decline after a period of growth. The lowest real interest rate in Iraq was recorded in 2022, with a value of  4.00%. The highest rate was in 2007, when it achieved 20.00%. 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.