Bank of Canada would consider setting interest rate below zero | Emergency Preparedness | Forums

think this would cause a bank run?

Negative interest rates are now on the table, but Canada’s central banker insisted Tuesday they’re unlikely to be implemented even as oil prices, the loonie and the stock market plunged for the second day in a row.

Bank of Canada governor Stephen Poloz unveiled the bank’s new “Framework for Conducting Monetary Policy At Low Interest Rates” — which included tools such as quantitative easing and negative interest rates in its arsenal after examining similar moves from its global peers during the financial crisis.

Negative interest effectively charges customers for deposits, discouraging saving and encouraging spending.

more http://www.thestar.c.....-zero.html