To stimulate growth central bank in Japan, Denmark, Sweden and Switzerland lower interest rate to subzero. As a result, Hans Peter Christensen in Denmark got an unusual news when he opened his most recent mortgage statement. Instead of paying interest on the loan he got a decade ago to buy a house, his bank paid him the equivalent of $38 in interest since the mortgage rate stood at negative 0.0562%. “My parents said I should frame it, to prove to coming generations that this ever happened,” said Mr. Christensen, a 35-year-old financial consultant, about his bank statement. When rates drop below zero, there’s an undesirable side effect as saving accounts pay no interest. It’s just not good for savers. (wsj.com)
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