Which countries have the lowest interest rates in the world?
The Bank of England recently raised the UK’s interest rate to 0.5% - up from the 0.25% that had been in place for a decade. The UK now has the eleventh lowest interest rate in the world (sharing the spot with Fiji), but which countries have lower rates?
7th – Israel
Israel’s interest rate of 0.1% makes it the country with the seventh lowest interest rate in the entire world. According to Haaretz, the change from 0.25% to 0.1% at the start of 2015 surprised the financial world. Will it go up any time soon?
6th – Eurozone
The seventeen countries that all share the Euro have a joint interest rate of 0.00% as set by the European Central Bank. According to the Guardian, the Eurozone rate was cut to 0% last year in order to help grow the economy.
5th – Bulgaria
Bulgaria shares a place on this list with the Eurozone by also having an interest rate set at 0%.
4th – Japan
In most countries, interest rates mean that those who leave money in banks receive money from their bank, however, for some countries, those who make deposits have to pay in order to do so – as a result of negative interest rates. Last January, Reuters reported that Japan had cut interest rates to -0.1% to tackle inflation, which has been a problem for the country.
3rd – Sweden
Sweden has had an interest rate of -0.5% since the beginning of 2016. The country had a negative interest rate before then but lowered it even further last year.
2nd – Denmark
Denmark has had a negative interest rate of -0.65% since last year. This makes it the country with the second lowest interest rate in the entire world.
1st - Switzerland
The country with the lowest interest rate in the world is Switzerland (-0.75%). According to Reuters, the Swiss central bank has been criticised for its use of negative rates, but the bank retaliated by saying the move could help the country’s currency.
The numbers in this list are based on this Wikipedia compilation of interest rates from around the world.