Wednesday, January 27, 2021

What is Negative Interest Rate Mean? - Economics 10

A corner at neighborhood, just for illustration

At previous post, we talked about negative price such as negative oil price around April, 2020, last year. The first time in American history:

- Why Oil Price Goes Negative in the Market? - Economics 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.

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%).


Chocolate covered strawberry

Moreover, a Bank of England, the British central bank is planning to have negative interest rate by February, 2021.

What the purpose of negative interest rate?

The main purposes that bank want or encourage people to:

- spend their money

- invest more into the market

- borrow money from bank to any purposes


These encouragements will boost the economy, based on experience in Japan, Denmark, Switzerland and Sweden.

Have you experienced with negative or close to zero interest rate?

34 comments:

  1. ...who would have ever thought that this would happen?

    ReplyDelete
  2. Far from it. We paid off our mortgage when interest rates were 17.5 %.

    ReplyDelete
  3. a risky process; I don't trust banks...

    ReplyDelete
    Replies
    1. Thanks-
      What is Negative Interest Rate Mean? - Economics 10
      -
      A corner at neighborhood, just for illustration

      At previous post, we talked about negative price such as negative oil price around April, 2020, last year. The first time in American history:
      - Why Oil Price Goes Negative in the Market? - Economics 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.

      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%).

      Delete
  4. Great post. It pays to think about interests and budgets and suchlike. We are saving up to remodel our bathroom. Perhaps next summer... I'm dreaming of a beautiful bathroom, but I don't want to borrow money in these insecure Covid 19 times.

    ReplyDelete
  5. Povera economia, qua in Italia stiamo andando a rotoli!!!

    ReplyDelete
    Replies
    1. Thanks-
      What is Negative Interest Rate Mean? - Economics 10
      -
      Chocolate covered strawberry
      Moreover, a Bank of England, the British central bank is planning to have negative interest rate by February, 2021.

      What the purpose of negative interest rate?

      The main purposes that bank want or encourage people to:

      - spend their money

      - invest more into the market

      - borrow money from bank to any purposes



      These encouragements will boost the economy, based on experience in Japan, Denmark, Switzerland and Sweden.

      Have you experienced with negative or close to zero interest rate?

      Delete
  6. Hello, we have no reason to borrow money but the low interest rates are a good thing. The market seems to be doing very well, overall big business are doing great. The middle and lower classes are barely making it , they live pay to pay and can not save money. Take care, enjoy your day!

    ReplyDelete
  7. I'm just not spending any money, we need to take care about our finances! It's a dark time for all!

    www.pimentamaisdoce.blogspot.com

    ReplyDelete
  8. What is Negative Interest Rate Mean? - Economics 10.
    I never know about this matter.

    ReplyDelete
    Replies
    1. Thanks-
      What is Negative Interest Rate Mean? - Economics 10
      -
      A corner at neighborhood, just for illustration

      At previous post, we talked about negative price such as negative oil price around April, 2020, last year. The first time in American history:
      - Why Oil Price Goes Negative in the Market? - Economics 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.

      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%).

      Delete
  9. Tanza, I do know that we get very little interest for our bank deposits. Still, its good to have some ready cash available for emergencies. We don't borrow money so the low interest rates in the USA don't help us in that regard. Stay Safe and Take Care, Big Daddy Dave

    ReplyDelete
  10. Replies
    1. Thanks-
      What is Negative Interest Rate Mean? - Economics 10
      -
      Chocolate covered strawberry
      Moreover, a Bank of England, the British central bank is planning to have negative interest rate by February, 2021.

      What the purpose of negative interest rate?

      The main purposes that bank want or encourage people to:

      - spend their money

      - invest more into the market

      - borrow money from bank to any purposes



      These encouragements will boost the economy, based on experience in Japan, Denmark, Switzerland and Sweden.

      Have you experienced with negative or close to zero interest rate?

      Delete
  11. I have never encountered a negative interest rate. I have to read about this mechanism.

    ReplyDelete
  12. Replies
    1. Thanks-
      What is Negative Interest Rate Mean? - Economics 10
      -
      A corner at neighborhood, just for illustration

      At previous post, we talked about negative price such as negative oil price around April, 2020, last year. The first time in American history:
      - Why Oil Price Goes Negative in the Market? - Economics 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.

      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%).

      Delete
  13. Oh, it's worrisome with the state of things due to the pandemic and now I don't think the new President plays to certain groups like somebody else did. It's just strange.

    ReplyDelete
  14. Wow, so much to learn and wonder what will happen next.

    ReplyDelete
  15. Wow, I should have seen it coming. Especially with this news of Gamestop & Reddit.

    ReplyDelete
    Replies
    1. Thanks-
      What is Negative Interest Rate Mean? - Economics 10
      -
      Chocolate covered strawberry
      Moreover, a Bank of England, the British central bank is planning to have negative interest rate by February, 2021.

      What the purpose of negative interest rate?

      The main purposes that bank want or encourage people to:

      - spend their money

      - invest more into the market

      - borrow money from bank to any purposes



      These encouragements will boost the economy, based on experience in Japan, Denmark, Switzerland and Sweden.

      Have you experienced with negative or close to zero interest rate?

      Delete
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    ReplyDelete
  17. Mãe passa a frente do s vosso s filhos do mundo inteiro e livramos desta pandemia em nome de vossos filho Jesus 👏👏👏


    ReplyDelete
    Replies
    1. Thanks-
      What is Negative Interest Rate Mean? - Economics 10
      -
      A corner at neighborhood, just for illustration

      At previous post, we talked about negative price such as negative oil price around April, 2020, last year. The first time in American history:
      - Why Oil Price Goes Negative in the Market? - Economics 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.

      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%).

      Delete
  18. Replies
    1. Thanks-
      What is Negative Interest Rate Mean? - Economics 10
      -
      Chocolate covered strawberry
      Moreover, a Bank of England, the British central bank is planning to have negative interest rate by February, 2021.

      What the purpose of negative interest rate?

      The main purposes that bank want or encourage people to:

      - spend their money

      - invest more into the market

      - borrow money from bank to any purposes



      These encouragements will boost the economy, based on experience in Japan, Denmark, Switzerland and Sweden.

      Have you experienced with negative or close to zero interest rate?

      Delete
  19. Very useful post. Have a nice day :)

    ReplyDelete
  20. Der Traktor sieht doch mal cool aus. Solche alten Geräte laufen komischerweise immer und gehen nicht kaputt. LG ROmy

    ReplyDelete
    Replies
    1. Thanks-
      What is Negative Interest Rate Mean? - Economics 10
      -
      A corner at neighborhood, just for illustration

      At previous post, we talked about negative price such as negative oil price around April, 2020, last year. The first time in American history:
      - Why Oil Price Goes Negative in the Market? - Economics 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.

      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%).

      Delete

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