United Kingdom Interest Rate Spread
Interest rate spread (lending rate minus deposit rate) FR.INR.LNDP
United Kingdom's interest rate spread was 2.75% in 1998, ranked 12th globally. This represents a 6.2% decrease from 1997. Data from World Bank, covering 1967–1998.
Overview
United Kingdom's interest rate spread stood at 2.75% in 1998, a decline of +0.18pp from 1997. United Kingdom ranked 12th globally.
The United Kingdom’s interest‑rate spread widened to 2.75 % in 1998, ranking it twelfth worldwide, after a gradual climb from a low of 1.29 % in 1967. The spread reached its all‑time high of 4.02 % in 1977, reflecting the volatile monetary environment of the late 1970s, before falling to a historic trough of –1.37 % in 1983, when policy rates fell below deposit rates amid aggressive tightening. Over the 32‑year record, the United Kingdom’s spread has remained modestly above that of peers such as Singapore (2.84 %) and Kuwait (2.62 %) in the same year, indicating a relatively tighter credit market than many emerging economies. The post‑trough recovery has been steady but limited, suggesting that future movements will hinge on the Bank of England’s stance toward inflation and the alignment of short‑term policy rates with longer‑term market yields; a sustained shift in either direction would alter the spread’s trajectory.
Data & projection
| Year | Interest Rate Spread | YoY change | Rank |
|---|---|---|---|
| 1998 | 2.75% | −0.18pp | #12 |
| 1997 | 2.93% | +0.02pp | #13 |
| 1996 | 2.91% | +0.33pp | #11 |
| 1995 | 2.58% | +0.78pp | #7 |
| 1994 | 1.81% | −0.24pp | #2 |
| 1993 | 2.04% | −0.06pp | #6 |
| 1992 | 2.10% | +0.69pp | #9 |
| 1991 | 1.41% | −0.81pp | #6 |
| 1990 | 2.22% | −0.11pp | #11 |
| 1989 | 2.34% | +0.79pp | #12 |
| 1988 | 1.55% | +0.38pp | #10 |
| 1987 | 1.17% | +0.12pp | #6 |
| 1986 | 1.05% | +0.59pp | #6 |
| 1985 | 0.46% | −1.95pp | #5 |
| 1984 | 2.41% | +3.78pp | #11 |
Detected Pattern
Analysis
United Kingdom matched the Export Boom Cycle pattern in 1985. 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
United Kingdom's interest rate spread was 2.75% in 1998. Ranked 12th globally. This represents a 6.2% decrease from the previous year.
United Kingdom's interest rate spread peaked at 4.02% in 1977.
The lowest interest rate spread in United Kingdom was -1.37% in 1983.
United Kingdom ranks 12th globally in interest rate spread as of 1998.
The World Bank indicator code is FR.INR.LNDP. Data sourced from World Bank.
The interest rate spread of United Kingdom in 1998 was 2.75%. This ranks 12th in the world.
Cite this page
@misc{historysaid_united-kingdom_interest-rate-spread,
title = {United Kingdom Interest Rate Spread},
url = {https://historysaid.com/united-kingdom/interest-rate-spread/},
publisher = {HistorySaid},
year = {2026}
}