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Negative Interest Rate Policy (NIRP)

Negative interest rate policy (NIRP) is a monetary policy tool in which central banks set interest rates below zero in order to stimulate borrowing and spending and stimulate economic growth. NIRP is used when traditional monetary policy tools, such as lowering interest rates, are no longer effective in achieving a central bank's economic objectives. Continue Reading Below

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About Negative Interest Rate Policy (NIRP)

Negative interest rate policy (NIRP) is a monetary policy tool in which central banks set interest rates below zero in order to stimulate borrowing and spending and stimulate economic growth. NIRP is used when traditional monetary policy tools, such as lowering interest rates, are no longer effective in achieving a central bank's economic objectives.