Interest Rate In 2025. This will mean markets will expect a higher rate of interest to lend to the government. Interest rates were only cut twice in 2024 with base rate falling from a high of 5.25 per cent to 4.75 per cent.

What this will then mean is that as nominal interest rate falls and inflation remains elevated, real interest rate (the gap) will narrow and may even drop into negative territory. So how could the fed’s moves — and any other economic changes that occur — impact the cd account interest rate landscape this year?