Negative interest rate means that the inflation rate is higher than the bank deposit rate. For example, if the inflation rate is 10% and the deposit interest rate is 3%, your money in the bank will shrink by 7% in the next year. If you didn't buy a house, a stock or even a fund in the past year, but just put your money in the bank, you will find that your wealth has not increased, but has shrunk with the rise of prices. This is the so-called phenomenon that the actual income of deposits is negative, and the interest earned by putting money in the bank can't keep up with the loss of currency depreciation. 20 15 10, after the central bank lowered the deposit interest rate, the one-year deposit benchmark interest rate was only 1.5%. If you take out 654.38 million yuan and deposit it for one year, after one year, the principal and interest will be 10 1 500 yuan, while the consumer price index (CPI) at that time was 1.6%, and the price will rise at the rate of 1.6%, which means that it will need 60% this year and next. This shows that your deposit of 654.38+ten thousand yuan has not appreciated after one year, but has shrunk by 100 yuan.
The so-called: negative interest rate, that is, the price index (CPI) rises rapidly, which leads to negative bank deposit interest rate, and the deposit bank interest rate cannot keep up with the inflation rate and becomes negative interest rate.