about howtocopyforextrading best forex copy trading forextradingsignals those things you know how much? Next, the ProHub editor will talk about the negative interest rate those things The so-called negative interest rate refers to certain economic conditions, the deposit interest rate (often refers to the one-year time deposit interest rate) cashback forex less than the rate of increase of CPI in the same period This is when the residents of the bank deposits over time, the purchasing power gradually reduced, it seems to be "shrinkage "the same, so the image is called negative interest rates What is a negative interest rate The so-called negative interest rate refers to certain economic conditions, the interest rate on deposits (often refers to the interest rate on one-year time deposits) is less than the rate of increase in the CPI over the same period This is when the residents of the bank deposits over time, the purchasing power gradually reduced, it seems like in the "shrinkage "the same, so is imaginatively called negative interest rate negative interest rate = bank interest rate - inflation rate (CPI index) negative interest rate negative role (1) the inverted deposit and loan interest rates will disrupt the normal order of the financial market someone will borrow from the bank and then deposited in the bank to sit on the difference of the inverted interest rate; (2) is not conducive to borrowing enterprises to use funds economically when the deposit and loan interest rates are inverted, the use of corporate funds will be wasted, even when there are money funds idle also do not return the bank loan, causing the credit capital turnover; (3) is not conducive to the economic accounting of banks and other financial institutions interest rate inversion, the more deposits banks take, the larger the scale of loans issued, the greater the loss, which is not conducive to the development of banks themselves, Shi is not conducive to the development of banking business Chinas negative interest rate history China has experienced a total of three negative interest rate stage. The first time was in the early 1990s, which lasted 38 months and lasted the longest period during which prices rose sharply and the central bank raised deposit rates twice and used the measure of the guaranteed discount rate However, this negative interest rate appeared 6 months later before the central bank raised interest rates for the first time, with the nominal interest rate going up to 10.98%, the rate increase was very limited compared to the 27.7% year-on-year increase in CPI The second negative interest rate The second negative interest rate phase started at the end of 2003 and ended at the beginning of 2005, which was not as serious as the last one, and in fact the lightest of the three negative interest rates: the nominal interest rate reached a historical low of 1.98%, 27 basis points lower than the current 2.25%, and the CPI performance was not outstanding. Therefore, the central bank chose to raise interest rates only after a year of negative interest rates. The third "negative interest rate" began in February 2007 and lasted for 21 months. This is closely related to the central banks six consecutive interest rate hikes The above is a brief introduction to the content of negative interest rates, to get more foreign exchange-related knowledge, please continue to pay attention to ProHub