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Old 09-03-2016, 07:48 PM  
DBS.US
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Join Date: Aug 2003
Location: North Captiva Island, Florida USA
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But what exactly are negative interest rates and how do they work?
Central banks have one key goal in mind when they cut rates: encourage people and businesses to spend their money.
That's why the Fed slashed interest rates to a historic low -- almost 0% -- in the midst of the financial crisis in 2008.
When people aren't earning any interest in the bank, they look around for other ways to make money.
Implementing a negative rate is an even bigger shock to jumpstart spending.



Janet Yellen: Negative rates possible in U.S. - Feb. 11, 2016
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