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Negative interest rates
Topic Started: Feb 27 2013, 08:52 AM (198 Views)
rumbaba
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http://www.telegraph.co.uk/finance/economics/9895068/Bank-of-England-mulls-negative-interest-rates.html

I do recall negative and zero interest interest rates in the past but that was simple supply and demand. In times of extreme volatility in the FX markets, people move their money into what the perceive as a safe currency e.g. Swiss Francs. The market then becomes awash with Swiss Francs that there is no underlying demand for, so you have to pay to keep your money there: it becomes a trade off between the loss of interest and the FX risk.

This is different though, this is central manipulation, bad news for savers :(
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