Negative Interest Rates Archives - Pearl Financial

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Nov 28

What Are The Effects Of Negative Interest Rates

By Editorial Team | Interest Rates

We will try to let you understand what Negative Interest Rates truly mean and how does it affect the lives of an ordinary citizen.

Interest rate cuts have been one of the principal means by the Central Bank in adjusting their monetary policies. Thus, every time there is a crisis, the initial solution of the central bank is to lower their interest rates. If the interest rates are already at zero, and the economy is still not well functioning as it intended to be, therefore, the traditional policy of cutting the interest rates into negative will not also work.

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