A study on negative interest rate policy across the world

Abstract

This report seeks to undertake a comprehensive review of the implementation and impact of Negative Interest Rate Policy across the world. It evaluates the causes and effects across Hungary, Japan, Denmark, Sweden, Switzerland and the Euro area. The reasons behind the adoption of this policy differ across the regions and are primarily either to ease pressure from capital inflows or to manage low inflation and inflation expectations. Negative interest rates have seen mixed effects on the different economies. In many cases, demographic profiles of these countries have enhanced low inflation conditions necessitating the implementation of this policy.