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There's a good chance we see negative interest rates in the US this year.
by Donald 7y ago
There's a good chance we see negative interest rates in the US this year.
- oyebenny 7y agoHow would that work?
- wcoenen 7y agoSame as in the EU where the ECB has a deposit rate of -0.5%. The deposits of banks at the central bank (aka "reserves") shrink over time according to the negative rate. https://www.ecb.europa.eu/stats/policy_and_exchange_rates/key_ecb_interest_rates/html/index.en.html https://www.ecb.europa.eu/stats/policy_and_exchange_rates/ke...
- Donald 7y agoMany central banks around the world have policies that have set rates below zero. Germany and Japan are the most high profile examples. With negative rates, depositors pay to have money stored at a bank.