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 BOJ will also continue applying a negative interest rate of minus 0.
Saying that he has a 'positive view' on the central bank's negative interest rate policy 'as a means to improve the Japanese economy,' Hirano suggested, 'But it is not desirable that (the policy) has become chronic.
A negative interest rate means that customers would be paid to borrow money or would pay to deposit money.
The country came very close to a negative interest rate.
A negative interest rate on bank deposits of -25 bp was announced on December 18 (but the decision was to be effective only 1 month later) with the goal of alleviating the pressure building up on the exchange rate floor relative to the Euro that had been in effect since September 2011.
But cuts into negative interest rate territory were unprecedented.
1 percent negative interest rate it applies to some of the excess reserves that financial institutions park with the central bank.
recipe of hyperA[degrees]easy monetary policy, fiscal spending and promised reforms, with 47 per cent giving a thumbs down to the Bank of Japan's negative interest rate stance, the poll showed.
In 2014, the Eurosystem (central banks in the euro area including the European Central Bank) broke through the lower zero bound by introducing a negative interest rate policy.
Negative interest rates are undertaken in order to promote inflation and growth," the bank's economist IoannisTirkides said in an internal document headlined "European Union Watch: negative interest rate policies and the long term effectiveness of monetary policies" seen by the Cyprus Business Mail on Wednesday.
The aim is clearly to ultimately encourage banks to lend their excess deposits into the real economy," said Keith Wade, chief economist at Schroders, commenting on the Bank of Japan's decision to introduce a negative interest rate policy.
Increasingly, zero interest rate policy has given way to negative interest rate policy, entailing an explicit transfer of wealth from savers to borrowers.