A list of countries at or near negative interest rates

ECN | 5 July 2016

In order to stimulate their respective economies, spur borrowing efforts and try to shoot out the last bullets possible, central banks all over the world are nearing to subzero interest rates.

At the present time, Japan, the European Central Bank, Switzerland and Sweden are sitting at negative territory. But more countries could be entering that list soon, including Albania, Bulgaria and Israel.

Here is a list of countries that are at or near negative interest rates:

The UK and Negative Rates

As per Yahoo! Finance:

In a negative rate environment, investors avoid government debt as it guarantees negative return. With the Bank of England easing monetary policy it will begin to approach negative rate territory which should reduce the demand for its government debt globally. As many fixed income rates globally are providing near zero returns, investors should be cautious of their fixed income investment allocations, avoiding government debt in countries with negative rates or rates at zero with easing monetary policy.

With inflation, the war on cash and subzero rates, be afraid. Be very afraid.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s