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:
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.