"interest rate differential" is a correct and commonly used term in written English.
It refers to the difference between two interest rates, typically for loans or investments. Example sentence: "The decision to invest in the foreign market was based on the favorable interest rate differential between the two countries."
Over the course of 40 years, this interest rate differential is enormous.
In February 2013, Bank of Ireland prompted fury after revealing it was triggering a "special condition" clause in loan agreements that allowed it to increase the "interest rate differential" on some of its UK base rate tracker mortgages.
Bank of Ireland has prompted fury after revealing it was triggering a "special condition" clause contained in loan agreements that, it said, allowed it to increase the interest rate "differential" on some of its UK base rate tracker mortgages.
First, a lower interest rate reduces a currency's relative expected return, so it has to cheapen until expected future appreciation overcomes the unfavorable interest rate differential.
So here's what I did: I took the implied 10-year breakeven inflation rate from US TIPS, minus the 10-year interest rate differential, plus the real appreciation Japan would experience if the real exchange rate against the dollar 10 years from now were to return to its level in January 2010.
This is reducing interest rate differential between 'safe haven' developed markets and 'risky' emerging markets, theoretically dangerous at a time when global capital begins its westward migration.
Across Canada there are significant and long- lasting differences in unemployment rates between provinces and between the provinces' credit ratings as reflected in interest rate differentials among provincial bonds.
Since most commercial paper is issued by companies with strong credit ratings, the recent sharp rise has not led to a widening in interest rate differentials between commercial paper and other short-term market instruments.
"The biggest driver of movement in currencies is interest rate differentials," he said.
As a result interest rate differentials between the various government bonds practically disappeared.
Short-term interest rates and interest rate differentials also show evidence of fractality.
