You may read previous post (Part 1):
- What is Negative Interest Rate Mean? - Part 1 | Tanza Erlambang Update
Moreover, the Bank of England, the British central bank was planning to have negative interest rate, then the rate was negative few years ago or by February, 2021.
We may wonder: what are the purposes of negative interest rate?
The main purposes that banks (the central bank) want or encourage people to:
- spending their money instead of saving in the banks
- investing more into the markets
- borrow money from the banks for any purposes, include consumption.
These encouragements will boost the economy, the fact is based on economic experiences in Japan, Denmark, Switzerland and Sweden.
Have you experienced with negative or close to zero interest rate in your places?
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