Meaning of “interest rate differential” in the English Dictionary

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"interest rate differential" in Business English

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interest rate differentialnoun [ C ]

uk us 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)