Interest rates are the most potential drivers of any economy that define the pace for investment in the country and affects economy in number of ways that significantly change the basic indicator of growth and development. Countries with highest interest rate may see sharp decline in consumer spending since cost to buy on credit goes high. It is the most important tool to control inflation since reduced consumer spending decrease demands of goods and services however it is taken as the best technique to attract foreign direct investment.
Overall trends show that most of European countries are trying to maintain flat or negative interest rates that left little to no choice for investors to get higher yield but if you are searching for higher interest rate, then you can find emerging and frontier markets outside Europe.
Bases on report of TradingEconomics, Here we have The Six Countries with the World’s Highest Interest Rates Worldwide. These countries have bank policy rates of above 20%!
Argentina (20. 52%)
Top two countries with highest interest rate are from Eastern Europe but most Europe is maintaining flat or negative rate. Gambia stands at third place but their high yield is all eaten away by high prices.
Central Asia, South America, and Sub-Saharan Africa are the top three regions for highest interest rates.
South America countries with highest interest rate are Argentina and Venezuela, who have rates of 20.52% and 19.17% respectively. Malawi, Gambia, and Ghana are African countries which offer highest return to investors.
High yield is of no importance if it is eaten away by higher inflation so we need to consider it too while determining the real return of interest. Here are ten countries with highest interest rates after inflation.
|Country||Region||Interest Rate (%)||Inflation (%)||Difference (%)|
|Lebanon||Middle East / North Africa||10.00||2.00||8.00|
|Cape Verde||Sub-Saharan Africa||7.50||(0.20)||7.70|
Five countries in Sub-Saharan Africa have highest interest rate with inflation decreasing rapidly these days. Interestingly, not a single country from Asia-Pacific got place in top ten.
See more of your interest:
- Top Ten Countries With the Highest Income Tax Rates
- Top 20 Business-Friendly Countries
- Which are the Countries Using Euro Currency
- Ten Countries with the Most External Debt
- Ten Countries That are Being Ruined by Least Efficient Government
- World’s Top 10 Poorest Countries with Lowest GDP per Capita
- Where is the Largest Seaport in the World
- Top 10 Countries having Highest Salaries in the World
- Which is the Poorest Country in the World
- Top 10 Richest Countries in the World