In this article, we discuss 5 countries with the lowest interest rates. If you want to see more of the countries with the lowest interest rates, go directly to 15 Countries with Lowest Interest Rates.
#5 Switzerland
Interest Rate: 0.5%
Reference Month: October 2022
Switzerland is one of the wealthiest countries in the world with a GDP per capita of over $93,457 in 2021. With an interest rate of 0.5%, Switzerland also has one of the lowest interest rates in the world. In September, the central bank raised rates by 75 basis points to 0.5%, potentially signaling that interest rates could rise further. Before the interest rate raise, Switzerland was one of the few nations with negative interest rates. Switzerland currently ranks #5 on our list of 15 Countries with Lowest Interest Rates.
#4 Fiji
Interest Rate: 0.25%
Reference Month: October 2022
With an interest rate of 0.25%, Fiji ranks #4 on our list of 15 Countries with Lowest Interest Rates. According to the Asian Development Bank, Fiji’s economy could expand 11.7% in 2022 and 8.5% in 2023, making the island country one of the fastest growing economies in the near term. Fiji’s economy is expected to grow due to the rebound in tourism.
#3 Cape Verde
Interest Rate: 0.25%
Reference Month: October 2022
Cape Verde is a nation comprised of several islands in the central Atlantic Ocean. Like some other countries, Cape Verde has to deal with high inflation in 2022, with the country’s inflation rate rising from 5.4% in December of 2021 to 8.2% in October of 2022. Interest rates in the country remain low, however, with the benchmark rate at Cape Verde at 0.25% in October of 2022.
#2 Bulgaria
Interest Rate: 0%
Reference Month: October 2022
According to tradingeconomics.com, Bulgaria has an interest rate of 0% for October 2022. In terms of its economy, Bulgaria has made substantial progress over the past few decades. The World Bank writes, “Bulgaria has undergone a significant transformation over the past three decades. It has transformed from a highly centralized, planned economy to an open, market-based, upper-middle-income economy securely anchored in the EU.”
#1 Japan
Interest Rate: -0.1%
Reference Month: October 2022
As the only country in the world with a negative interest rate, Japan ranks #1 on our list of 15 Countries with Lowest Interest Rates. As of October 2022, Japan had an interest rate of -0.1%, which is the same short term interest rate as that during September of 2022. According to the Bank of Japan’s estimates, inflation will be 2.9% in 2022, up slightly from the previous estimate of 2.3%, but still well below that of many other nations.
In terms of its history, Japan’s -0.1% interest rate isn’t unique. The country has had negative interest rates for six years and the country’s core inflation is still low when adjusting for the rising in energy prices. Although negative interest rates can make consumers want to spend more because it theoretically costs savers money to save, Japan’s consumption has not increased all that much over the past few years.
Nevertheless, Japan’s economy is expected to expand in the future. According to the IMF, Japan’s economy is expected to grow 1.7% in 2022. According to an OECD Economic Outlook, Japan’s economy is expected to grow 1.8% in 2023 and 0.9% in 2024 in terms of real GDP growth. Inflation is also expected to remain low in the next few years in the country.
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