The zero interest rate policy (ZIRP) is a Keynesian macroeconomics scheme for economies exhibiting slow growth with a very low interest rate, such as contemporary Japan and since December 16, 2008 the United States.
Under ZIRP, the central bank maintains a 0% nominal interest rate. The intended effect of a ZIRP is to encourage investment throughout the economy by making capital purchases more financially attractive. Whether ZIRP succeeds in achieving this goal is a matter of much debate.
- Bank of England: 2.0%
- Federal Reserve: 0.25%
- Bank of Japan: 0.103%
- European Central Bank: 2.5%
- Reserve Bank of Australia: 4.25%
- Swiss National Bank: 0.5%
- Bank of Canada: 1.5%
= 11.103%
God forbid the carry trade should come back any time soon.
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