Synchronisation and staggering of interest rate change by UK financial services firms

John K. Ashton*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review


This study examines the frequency and form of deposit account interest rate change. Specifically the question of whether deposit interest rate change is synchronised with other banks or staggered at periodic intervals is addressed. Overall, evidence consistent with individual banks changing deposit interest rates in a staggered manner is recorded. Further larger banks are seen to change interest rates in a more synchronised manner than smaller banks. Lastly, when banks offer multiple deposit accounts, these products' interest rates are generally changed simultaneously by individual banks. These findings extend the current understanding of deposit interest rate change, and indicate that UK deposit interest rate setting is relatively rigid.

Original languageEnglish
Pages (from-to)55-69
Number of pages15
JournalInternational Review of Applied Economics
Issue number1
Publication statusPublished - 2009


  • Interest rates
  • Retail banking
  • Staggering
  • Synchronisation

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