+- Cricket Windies (https://cricketwindies.com)
+-- Forum: What’s on Your Mind? (https://cricketwindies.com/forum-3.html)
+--- Forum: The Water Cooler! (https://cricketwindies.com/forum-4.html)
+--- Thread: Negative Interest Rate (/thread-29222.html)
Pages:
1
2
Negative Interest Rate - Nargis - 02-10-2016
what is this?
Re: Negative Interest Rate - ketchim - 02-10-2016
LoL !
My advice to Cappo , Googs, Chairman et al :
remove your money from "small banks" and keep under Mattress
Federal Treasury Bills are useless...
Re: Negative Interest Rate - ketchim - 02-10-2016
Couple months ago I thought our Bank of Canada :
would have set interest rates at ZERO % :-[
and government T bills , pay zero as well !
Re: Negative Interest Rate - Nargis - 02-10-2016
gosh i have no idea what you said there....lol
Re: Negative Interest Rate - chairman - 02-10-2016
[quote author=~Nargis~ link=topic=102600.msg677846#msg677846 date=1455120669]
gosh i have no idea what you said there....lol
[/quote]
With negative rates, commercial banks would now have to pay the central bank to hold deposits with them.
Re: Negative Interest Rate - Nargis - 02-10-2016
with "them" who?
so that means right now the commercial bank is not paying the central bank to hold money>
Re: Negative Interest Rate - chairman - 02-10-2016
[quote author=~Nargis~ link=topic=102600.msg677849#msg677849 date=1455121133]
with "them" who?
so that means right now the commercial bank is not paying the central bank to hold money>
[/quote]
normally the central banks charges a commercial bank a rate to borrow lets say 2%. now the commercial banks have to pay the central to hold their money ;D
Re: Negative Interest Rate - chairman - 02-10-2016
[quote author=~Nargis~ link=topic=102600.msg677808#msg677808 date=1455114764]
what is this?
[/quote]
By charging interest on bank deposits, the central bank is hoping banks will want to avoid paying interest and instead start lending out their excess funds again, and thus spur the economy back to full employment.
Re: Negative Interest Rate - ketchim - 02-10-2016
[quote author=The Chairman link=topic=102600.msg677851#msg677851 date=1455121491]
and instead start lending out their excess funds again, .
[/quote]
Unfortunately that Lending will be at astronomical Interest rates
Cost of consumer borrowing will triple or quadruple .
IT is a stoopid Central Bank policy !
Re: Negative Interest Rate - ketchim - 02-10-2016
Instead of making Central bank ZERO %:
and forcing commercial banks to make Loans @ criminal % rates.
Why NOT just increase Federal interest rates ??
Too Simple ?
uh huh ! ::LOL::