What do negative interest rates mean?

Negative interest rates refer to a situation in which the central bank charges banks to hold their money, rather than paying them interest. This is done in order to encourage banks to lend more money to businesses and individuals, which can help boost economic growth. Negative interest rates can also lead to a weaker currency, which can make a country’s exports more competitive. However, negative interest rates also have potential downsides, such as encouraging people to save less and making it more difficult for banks to make a profit.

The effects of interest rates are often not directly felt but play out over a long time as valuations of real-estate and other assets adjust.

At Horizon65, we created a mobile app that enabled you to check the effect of high interest rates on your savings and to simulate potential investments that can defend against it.

Similar Questions

What are new car interest rates?

New car interest rates vary depending on the lender, the type of car, and the borrower’s credit score. Typically, rates rang...

What is deposit interest rate?

The Deposit interest rate is the amount of money that a bank or other financial institution will pay you for keeping your money in...

Who sets interest rates?

Interest rates are typically set by a variety of entities, including: Central Banks: Central banks, such as the Federal Reserve in...

Ready to get started?

Download our app and start gaining insight into your current and future finances.