Negative Interest Rate

Negative Interest Rate

An interest rate paid by a lender to a borrower rather than the other way around. Negative interest rates may occur when the interest rate is below the inflation rate, or when the lender actually pays the borrower more. Negative interest rates occur during periods of high volatility.
References in periodicals archive ?
The negative interest rate and the interest rate differential with other currencies make the Swiss franc less attractive, and continue to help weaken it.
German growth will be artificially boosted by the negative interest rate policy of the European Central Bank (ECB).
With US interest rates at zero for so long, many finance experts discussed the possibility of a negative interest rate coming to the States.
The University of Michigan's Miles Kimball has suggested creating a negative interest rate on electronic money (so that your savings account would decrease in value every year).
Another possibility for generating a negative interest rate was suggested by Robert Eisler (1932): when an exchange rate is set between bank reserves and cash (rather than the presumed parity rate).
For example, at a negative interest rate, it would pay to level the Rocky Mountains to save even the small amount of fuel expended by trains and cars that currently must climb steep [gradients].
I buy a bond for $1,000 and get back $950 -- that's a negative interest rate,'' says Moody's Analytics economist Mark Zandi.
Switzerland's National Bank (SNB) has brought in a negative interest rate cutting the value of large sums of money left on deposit in the country, reports BBC citing the SNB.
Basel, Safar 26, 1436, Dec 18, 2014, SPA -- The central bank of Switzerland said Thursday it wiould introduce a negative interest rate to fend off a further strengthening of the Swiss franc.
5%, eectively a negative interest rate when you factor in ination, and that serves as the benchmark for the cost of credit to nancial markets.
In response, the ECB lowered its key interest rates, which resulted in a negative interest rate on commercial-bank deposits at the ECB.
Negative interest rate environments, although largely new to the U.