Zero interest rates

Zero interest rates mean the interest rate is negative, close to, or equal to zero. In general, low-interest rates mean investors receive less interest on their money at the bank. For businesses and individuals who borrow money, zero interest rates are beneficial – they can borrow money cheaply.

Zero interest rates result from the ECB’s current monetary policy of setting the key interest rate in the Eurozone. However, since the middle of 2022, the ECB has again increased the key interest rate, which means a departure from the zero interest rate policy.

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