General discussion on NEGETIVE INTEREST RATE POLICY, started in certain countries?

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1

  1. negative interest rates rule will be applicable only to bank deposits or to govt./corporate bonds also ?

  2. does this signal a devaluation of currency in near future ?

  3. can citizens of those countries make deposits in foreign countries for earning interest ?

  4. do negative interest rates always lead to bullish moves in equity sector of the country ?

  5. how long does this kind of policy stay active ?

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Central bank governors of certain countries are idiots and behaving like mad man, certain thing i want to tell u about negative rates, it simply means that u cannot keep ur money in fds or saving , u either have to invest it or keep it at home, about currency devaluation, maximum currency devaluation of yen has already happened because market knows that bank of japan has now used all his ammunitions and now they cannot take any more steps, if market does think otherwise yen would have fallen upto 5 to 7%, third there are 4 major banks in the world whose actions really matters, fed, japan bank, ECB, peoples bank of china, ECB and japan bank has used all their ammunitions and now FED is tightening, so know nothing left with these idiots to make stock market increase on artifical money, fourth all these things have already factored in markets, if this was not the case DAX which increase from 9000 to 12000 due to ECB action have not fallen back again to 9400, last with these negative rates only haves get benefit, have -nots become poor , with currency devaluation, though exports increase but only certain haves got benefit but have-nots wealth and their money decrease in value ,so central banks actions have these worst effects , i from strating appreciate the RBI governor for not decreasing the rates, infact my thinking is that repo rate should not ever fallen below 7.5%, because for u and me only bloody hell inflation matters , nothing hell, and about haves, ambanis and tatas still can buy “tomatoes” even if it 200 rs per kg

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completely agree with Nishant answer… Negative interest can stable market or increase exports for short term… but in long term when they start tighting interest rates… it will be a big problem for all companies…