Two Central Banks in This Country Still Maintain Negative Interest Rates

Amidst the global trend of rising interest rates, the Bank of Japan (BOJ) and the Swiss National Bank (SNB) are still maintaining negative interest rate policies, i.e., below zero percent.

Several other central banks in Europe also implemented negative interest rate policies to stimulate economic growth. However, following Russia's invasion of Ukraine, which led to soaring energy commodity prices, especially global crude oil, central banks worldwide are now seemingly racing to raise interest rates to curb inflation.

According to Tradingeconomics data, the Bank of Japan's benchmark interest rate stood at -0.1% in July 2022. This negative interest rate policy has been in place since 2016 with the aim of stimulating domestic economic growth.

Here's the macroeconomic condition of Japan (as of July 2022):

* Interest Rate: -0.1%
* Inflation: 2.6%
* Economic Growth: 0.2%

Meanwhile, the Swiss National Bank's benchmark interest rate was at -0.25% in June 2022. This figure is up 50 basis points (bps) from -0.75% in March 2022. The SNB has implemented a negative interest rate policy since 2016.

Here's the macroeconomic condition of Switzerland (as of June 2022):

* Interest Rate: -0.25%
* Inflation: 3.4%
* Economic Growth: 4.4%

Meanwhile, the Bank Indonesia's Board of Governors meeting on August 22-23, 2022, decided to raise its benchmark interest rate by 25 basis points (bps) to 3.75%. Similarly, the United States Federal Reserve (The Fed) raised its benchmark interest rate by 75 bps to a range of 2.25-2.5% last month.