Global Loan Rates Rise Amid Inflation, Central Bank Policies, Institutional Challenges

Interest rates on loans and mortgages have generally edged higher across various markets in 2025. In Kosovo, commercial banks increased loan interest rates significantly due to Central Bank policies requiring higher reserves, inflation, and institutional crises, with rates rising from around 6% to above 7-8% for consumers and over 10% for businesses. Meanwhile, in the UK, mortgage rates remained mostly steady with minor fluctuations, though some lenders adjusted fixed rates both upward and downward within certain loan-to-value categories. In the US, mortgage rates have seen a slight rise, with 30-year fixed rates climbing to 6.45%, reflecting broader economic trends such as Treasury yield increases. Additionally, lenders like Rate have proactively raised conforming loan limits ahead of federal updates to help borrowers access competitive financing. In India, banks are recalibrating lending strategies by increasing mark-ups on new loans to protect margins amid changing interest rate dynamics, with fresh loan rates rising while deposit rates decline more slowly, highlighting a cautious stance toward credit growth and profitability.