IDEAS home Printed from https://ideas.repec.org/a/ces/ifofor/v22y2021i06p27-32.html
   My bibliography  Save this article

Negative Interest Rate Policies: Taking Stock of the Experience So Far

Author

Listed:
  • Luis Brandao-Marques
  • Marco Casiraghi
  • Gaston Gelos
  • Gunes Kamber
  • Roland Meeks

Abstract

For almost 10 years, several central banks in advanced economies have cut and maintained their key policy rates below zero. Central banks in Denmark, the euro area, Japan, Sweden, and Switzerland had turned to such policies in response to persistently below-target inflation rates and a very low neutral real interest rate. However, negative rate policies remain controversial, and their potential side effects are subject to much debate. This paper surveys the body of research that has grown out of the experience with the policy to date, and takes stock of the evidence. Overall, the experience with negative rates has broadly been positive. Lending and deposit rates fell following the adoption of NIRP. Bank lending volumes rose, and bank profits for the most part did not significantly deteriorate.

Suggested Citation

  • Luis Brandao-Marques & Marco Casiraghi & Gaston Gelos & Gunes Kamber & Roland Meeks, 2021. "Negative Interest Rate Policies: Taking Stock of the Experience So Far," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 22(06), pages 27-32, November.
    • Handle: RePEc:ces:ifofor:v:22:y:2021:i:06:p:27-32
    as

    Download full text from publisher

    File URL: https://www.cesifo.org/DocDL/CESifo-Forum-2021-6-brandao-casiraghi-gelos-kamber-negative-interest-rate-november.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Simon H. Kwan & Mauricio Ulate & Ville Voutilainen, 2023. "The Transmission of Negative Nominal Interest Rates in Finland," Working Paper Series 2023-11, Federal Reserve Bank of San Francisco.
    2. Avignone, Giuseppe & Girardone, Claudia & Pancaro, Cosimo & Pancotto, Livia & Reghezza, Alessio, 2022. "Making a virtue out of necessity: the effect of negative interest rates on bank cost efficiency," Working Paper Series 2718, European Central Bank.
    3. Altunbas, Yener & Avignone, Giuseppe & Kok, Christoffer & Pancaro, Cosimo, 2023. "Euro area banks’ market power, lending channel and stability: the effects of negative policy rates," Working Paper Series 2790, European Central Bank.
    4. Cynthia Balloch & Yann Koby & Mauricio Ulate, 2022. "Making Sense of Negative Nominal Interest Rates," Working Paper Series 2022-12, Federal Reserve Bank of San Francisco.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ces:ifofor:v:22:y:2021:i:06:p:27-32. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Klaus Wohlrabe (email available below). General contact details of provider: https://edirc.repec.org/data/ifooode.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.