EUR/GBP Interest Rate Differential
The current policy-rate gap between Euro and British Pound, and which side of EUR/GBP earns the carry. Updated daily · as of June 18, 2026.
British Pound carries the higher policy rate, so going short EUR/GBP earns positive carry (swap); the opposite side pays it.
This is the current gap. The market trades the expected differential, which can move EUR/GBP before any rate change lands.
Go deeper
All interest rate differentials
The full matrix and carry calculator for every major.
The Carry Trade
How the differential becomes a daily swap, and why it crashes.
Euro rate decision
The schedule and results that move the EUR leg.
British Pound rate decision
The schedule and results that move the GBP leg.
EUR/GBP carry — frequently asked
What is the EUR/GBP interest rate differential?
The EUR/GBP interest rate differential is currently -1.50 pp — the Euro policy rate (2.25%) minus the British Pound policy rate (3.75%). British Pound carries the higher rate, so it tends to attract demand.
Does long EUR/GBP earn or pay swap (carry)?
Going short EUR/GBP earns positive carry, paid as the daily swap (rollover), because that side holds the higher-yielding currency (British Pound). The opposite side pays the swap. Carry is simply the interest-rate differential turned into a daily cash flow.
Why does the expected EUR/GBP differential matter more than today's?
Markets price the future, not the present. EUR/GBP can move on a widening or narrowing expected differential before any actual rate change, as new data and central-bank guidance shift the expected paths of the Euro and British Pound central banks. Today's gap is largely already priced in.
Does the higher-yielding side of EUR/GBP always go up?
No. The rate differential is gravity, not a guarantee. It dominates in calm, risk-on conditions, but in a risk-off shock capital rushes to safe havens regardless of yield, and crowded carry positions can unwind violently.