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What Effect Could a Negative Interest Rate Have Over an Economy?

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Jan 29, 2015 06:26 pm
#1
analyst75 User

Posts: 128
Member since: 22/11/2014

 

Hello.

 

  1. What effect would a negative interest rate have over an economy?

 

  1.  Is it positive of negative effect? In addition, what prompts a central bank to reduce their interest rate to negative (-)?

 

  1. What do they hope to achieve by doing this?

 

  1. What effect would this have on the fixed deposits or borrowed money in such countries?

 

For example, the interest rate in Switzerland is currently negative.

 

These are vital questions and answers would be appreciated.

 

 

Thank you.

Jan 02, 2016 11:29 pm
PeterCanes User

Posts: 10
Member since: 07/12/2015

It obviously have bad effect, but as a trader, I don’t worry about it, as my main objective is only to be aware of what’s possible, as with that, I am able to trade well. I usually prefer doing long term trading whenever I am uncertain and thanks to Nova FX company, it is really helpful given their daily market analysis service, we can subscribe to this and always get update daily, so that’s why I really like it and trust them completely.

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