Tonga Interest Rate Spread
Interest rate spread (lending rate minus deposit rate) FR.INR.LNDP
Tonga's interest rate spread was 6.42% in 2025, ranked 30th globally. This represents a 3.3% increase from 2024. Data from World Bank, covering 2012–2025.
Overview
Tonga's interest rate spread stood at 6.42% in 2025, a rise of +0.21pp from 2024. Based on recent trends, this figure is projected to reach 6.42% by 2025. Tonga ranked 30th globally.
Tonga’s interest‑rate spread has narrowed modestly since the World Bank’s 2012 peak of 6.81%, falling to a trough of 4.79% in 2016 before edging back to 6.42% in 2025, a level that ranks the kingdom 30th globally. The 2025 spread remains slightly above the peer average of Montenegro’s 6.45% and Trinidad and Tobago’s 6.39%, suggesting that Tonga’s banking sector continues to face a modest cost‑to‑lending gap relative to comparable small economies. The 14‑year coverage shows a gradual compression of margins, reflecting tighter monetary policy and modest improvements in financial intermediation, yet the recent uptick signals lingering structural frictions such as limited competition and a small domestic credit market. If reforms that deepen financial inclusion and enhance market competition take hold, the spread could resume its downward trajectory, further aligning Tonga with the lower‑end of the regional peer group.
Data & projection
| Year | Interest Rate Spread | YoY change | Rank |
|---|---|---|---|
| 2027* trend | 6.66% | - | - |
| 2026* trend | 6.54% | - | - |
| 2025* trend | 6.42% | - | - |
| 2025 | 6.42% | +0.21pp | #30 |
| 2024 | 6.21% | +0.02pp | #52 |
| 2023 | 6.19% | −0.02pp | #56 |
| 2022 | 6.21% | +0.35pp | #56 |
| 2021 | 5.86% | +0.11pp | #58 |
| 2020 | 5.76% | −0.02pp | #57 |
| 2019 | 5.78% | +0.58pp | #54 |
| 2018 | 5.20% | +0.34pp | #53 |
| 2017 | 4.86% | +0.06pp | #51 |
| 2016 | 4.79% | −0.42pp | #49 |
| 2015 | 5.22% | −0.60pp | #61 |
| 2014 | 5.81% | −0.72pp | #63 |
| 2013 | 6.53% | −0.28pp | #77 |
| 2012 | 6.81% | – | #77 |
Detected Pattern
Analysis
Tonga matched the Fiscal Dominance Trap pattern in 2022. Historically, 72% of countries showing this pattern (278 out of 386) saw interest rate spread improve within 24 months. View full analysis →
Frequently Asked Questions
Tonga's interest rate spread was 6.42% in 2025. Ranked 30th globally. This represents a 3.3% increase from the previous year.
Tonga's interest rate spread peaked at 6.81% in 2012.
The lowest interest rate spread in Tonga was 4.79% in 2016.
Tonga ranks 30th globally in interest rate spread as of 2025.
The World Bank indicator code is FR.INR.LNDP. Data sourced from World Bank.
Tonga's interest rate spread is projected to reach 6.42% by 2025 based on trend extrapolation.
The interest rate spread of Tonga in 2025 was 6.42%. This ranks 30th in the world.
Cite this page
@misc{historysaid_tonga_interest-rate-spread,
title = {Tonga Interest Rate Spread},
url = {https://historysaid.com/tonga/interest-rate-spread/},
publisher = {HistorySaid},
year = {2026}
}