Following the Bank of Japan’s launch of negative interest rates,we answer the key questions Normally savers earn interest when they deposit their money in banks. Similarly, commercial banks that lodge money with central banks receive interest for doing so. Negative interest rates turn this arrangement on its head. Savers believe to pay banks for holding their money and central banks penalise banks for depositing cash with them. Related: OECD calls for less austerity and more public investment Continue reading...
Source: theguardian.com