The future of negative rate policies


The EURO logo is pictured in front of the European Central Bank, ECB in Frankfurt/Main, central Germany, on November 6, 2014. The European Central Bank held its key interest rates unchanged at its regular monthly policy meeting. AFP PHOTO / DANIEL ROLAND

OVER the past year, a number of central banks took their interest rates into negative territory. Were they successful with the negative interest rate policy (NIRP)? What is the future of NIRPs?

Before answering the question, what is negative interest rate all about? It is actually the nominal interest rate which is set with a negative value.

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