What is Negative Interest Rate Mean? - Part 1

At previous postings, we have talked about negative price such as negative oil price, it was happened around April 2020 few years ago. That was the first time in American history.

Fig 01- Negative interest rate (credit to Money for the rest of Us).

You may read about oil price goes negative:

- Why does Oil Price Go Negative in the Market?- Part 1

- Why does Oil Price Go Negative in the Market?- Part 2

How about with negative interest rate?

It means that if we save (deposit) our money, then the bank will charge it. Some banks have specific limit, the charge is applied only to excess cash.

Another meaning that you will get some “amount of money or credit” if you get loan from banks.

Fig 02- A corner at neighborhood, just for illustration.

What countries experienced with negative interest rates?

Here are some:

- Switzerland, interest rate sits at -0.75% (minus 0.75%).

- Denmark has interest rate at -0.60% (minus 0.60%).

- Sweden with interest rate at -0.10% (minus 0.10%).

- Japan has interest rate of -0.10% (minus 0.10%).

Fig 03- Empty Street, just illustration

Have your countries experienced negative interest rate?

# To be continued to Part 2

## Previous postings:

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- Could Available Drugs Regenerate beta Cells? – Part 2 - Diabetes 28 | Tanza Erlambang Update