Japan Interest Rate Spread
Interest rate spread (lending rate minus deposit rate) FR.INR.LNDP
Japan's interest rate spread was 0.67% in 2017, ranked 7th globally. This represents a 9.5% decrease from 2016. Data from World Bank, covering 1993–2017.
Overview
Japan's interest rate spread stood at 0.67% in 2017, a decline of +0.07pp from 2016. Japan ranked 7th globally.
Japan’s interest‑rate spread has narrowed dramatically over the 25‑year span from 1993 to 2017, falling from an all‑time peak of 2.72 % in 1993 to a trough of 0.67 % in 2017, the latter placing the country seventh globally in that year. The contraction reflects persistent ultra‑low policy rates and a prolonged period of subdued inflation, which have compressed the gap between short‑term and long‑term yields. By contrast, peer economies such as Uzbekistan record a slightly higher spread of 0.70 %, while Burkina Faso’s spread stands at 0.93 %, underscoring Japan’s comparatively tighter monetary conditions. The sustained flattening of the yield curve suggests limited room for further rate cuts, and any shift in fiscal stimulus or a resurgence of inflation expectations could alter the trajectory, potentially widening the spread in the coming years.
Data & projection
| Year | Interest Rate Spread | YoY change | Rank |
|---|---|---|---|
| 2017 | 0.67% | −0.07pp | #7 |
| 2016 | 0.74% | +0.01pp | #11 |
| 2015 | 0.74% | −0.07pp | #13 |
| 2014 | 0.80% | +0.04pp | #13 |
| 2013 | 0.76% | −0.17pp | #12 |
| 2012 | 0.93% | −0.11pp | #12 |
| 2011 | 1.04% | −0.06pp | #12 |
| 2010 | 1.10% | −0.19pp | #14 |
| 2009 | 1.29% | −0.03pp | #14 |
| 2008 | 1.32% | +0.25pp | #14 |
| 2007 | 1.08% | +0.09pp | #14 |
| 2006 | 0.98% | −0.42pp | #11 |
| 2005 | 1.41% | −0.28pp | #10 |
| 2004 | 1.69% | −0.09pp | #4 |
| 2003 | 1.78% | −0.05pp | #3 |
Detected Pattern
Analysis
Japan matched the Export Boom Cycle pattern in 2004. Historically, 71% of countries showing this pattern (546 out of 768) saw interest rate spread improve within 24 months. View full analysis →
Frequently Asked Questions
Japan's interest rate spread was 0.67% in 2017. Ranked 7th globally. This represents a 9.5% decrease from the previous year.
Japan's interest rate spread peaked at 2.72% in 1993.
The lowest interest rate spread in Japan was 0.67% in 2017.
Japan ranks 7th globally in interest rate spread as of 2017.
The World Bank indicator code is FR.INR.LNDP. Data sourced from World Bank.
The interest rate spread of Japan in 2017 was 0.67%. This ranks 7th in the world.
Cite this page
@misc{historysaid_japan_interest-rate-spread,
title = {Japan Interest Rate Spread},
url = {https://historysaid.com/japan/interest-rate-spread/},
publisher = {HistorySaid},
year = {2026}
}