Negative Interest Rate

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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.
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Negative Interest Rate Policy : The European Central Bank experimented with unconventional monetary policy in 2015, including negative interest rates where savers pay to save, to pull Europe's economy out of the doldrums.
In a poll of 13,000 consumers across Europe, the US and Australia, an ING International Survey (IIS) found that 77% of consumers would withdraw money from bank accounts following negative interest rates.
The financial system is becoming habituated to the flood of money pouring from the ECB month after month, and to the unnatural situation of negative interest rates, and this is leading to an increasing risk of speculative bubbles.
Its excessive strength will force the Swiss National Bank to main- tain negative interest rates.
To do this, it would be necessary to put a tax on paper money, to prevent people from avoiding negative interest rates by turning their checking accounts into cash.
The idea of engineering substantially negative interest rates also has a long history.
dollars) on the market at negative interest rates and registering a demand of more than 8 billion euros.
Despite the impact of foreign exchange and negative interest rates on our businesses, the Group's consolidated operating income grew 6% from the first half of 2014 to CHF 558 million, benefiting from robust client activity.
If we continue into the realm of negative interest rates (15 countries at the time of this writing), market distortion will escalate the challenge of deciphering the pure calculus of equity prices.
They have tried negative interest rates, record low interest rates, long-term refinancing packages to encourage borrowing, and when they issued QE, that signaled to me that we had reached a new era of monetary policy for a central bank that are no strangers to easing monetary policy.
The bank said that it would impose negative interest rates on banking institutions' Swiss franc, Danish krone, Swedish krona and euro accounts.
There are challenges, including volatility in exchange rates and prolonged low inflation along with negative interest rates, sustained imbalances and geopolitical tensions," the draft said.