Why do interest rates differ between countries?
The same money runs at a different temperature in every country.
In the same month, some countries raise rates, some cut and some hold. The inflation target, and inflation today: together they set each country’s “temperature” of interest rates.
In 30 seconds
- As of September 2026, policy rates differ widely: Brazil 13.75%, South Africa 7.25%, India 5.25%, the United States 3.75–4.00% and the euro area’s deposit rate 2.50%.
- One source of the difference is the inflation target. The euro area and the United States target 2%, Brazil and South Africa 3%, India 4%.
- In the same September, the United States, the euro area and South Africa raised rates, Brazil cut, and India held in August.
The temperature of five economies.
Even at the same moment, policy rates differ this much.
Brazil’s policy rate (from 17 September 2026)
The highest of those set side by side here. The euro area’s deposit rate is 2.50%.
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The figures side by side
Brazil 13.75% (from 17 September 2026)[1], South Africa 7.25% (September 2026)[2], India 5.25% (held on 5 August 2026)[3], the United States 3.75–4.00% (16 September 2026)[4], the euro area’s deposit rate 2.50% (from 16 September 2026).[5]
The name and setting of the policy rate differ by country. Here we list the rate each central bank announces as its main policy rate.
The target temperature differs.
The rate of inflation that central banks target differs by country.
Today’s temperature differs too.
How far inflation is from target today changes which way rates move.
Some raise, some cut, some hold.
Even at the same time, the direction of rates varies.
A scale for reading what comes next.
A scale for reading each country’s interest rates.
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Distance from target
How far inflation today is from each target.[2][3][4][5][6]
The next meeting
The date of each central bank’s next rate meeting.
Direction of travel
Raise, cut or hold — do the directions line up or scatter?
This is not investment advice
This edition explains why interest rates differ. It does not recommend buying or selling any currency or product. Figures were checked on 26 September 2026 and may change.
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- Policy rates of every central bank in the world. Five economies serve as examples.
- The latest rates in other countries in the Middle East or Asia-Pacific. Not checked in this edition.