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Why do some countries have negative interest rates?
short by Krishna Veera Vanamali / on Thursday, 15 August, 2019
Under a negative interest rate policy, central banks encourage lending by requiring banks to pay interest for keeping excess reserves with it. Hence, banks offer a negative interest rate on customer deposits, making customers pay to deposit money with banks, to encourage spending and discourage saving. The eurozone, Switzerland, Denmark, Sweden and Japan have allowed rates to fall below zero.
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