7 lowest central bank interest rates – how does Britain now compare?

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.

Have something to tell us about this article?