Meaning of “interest rate differential” in the English Dictionary

business-english dictionary

"interest rate differential" in Business English

See all translations

interest rate differentialnoun [ C ]


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)