Interest rates couldn't possibly go any lower right? Maybe they could.
Central Banks in Europe have already slashed interest rates below zero and the Bank of Canada said it could do the same if it needed to in the face of an economic crisis.
The article linked below explains how negative interest rates work as well as what they mean for banks, the economy and consumers.
A number of central banks have slashed interest rates below zero, in a desperate measure to bolster their economies. Sweden’s central bank pushed its rates deeper into negative territory and Japan recently introduced negative interest rates.
In December, the Bank of Canada said it could cut rates below zero if the country faced an economic crisis.
Keep reading: http://www.theglobeandmail.com/report-on-business/economy/what-are-negative-interest-rates-and-how-do-they-work/article27669897/