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English definition of “interest rate differential”

interest rate differential

noun [C]
 
 
FINANCE
the percentage difference in the interest rate of two countries' currencies: If Japanese Yen has a 0.5% interest rate, and the British pound has a 4.5% interest rate, the interest rate differential of the two currencies is 4%.
(Definition of interest rate differential from the Cambridge Business English Dictionary © Cambridge University Press)
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