Read More@ MoneyControl
Denmark's third-largest lender, Jyske Bank, has launched 10-year mortgage deals at a negative interest rate of 0.5 percent, the first of its kind in the world. It works like this: borrowers will pay the usual EMI but the outstanding amount will be slashed each month by more than the borrower has paid. The unconventional decision is the latest in a series of moves central and commercial banks in advanced economies have undertaken to revive demand and boost consumption. A fall in interest rates, both on lending as well as deposits, nudges consumers to spend rather than save.