Editing Interest rate (section)

====Practice====
Both the [[European Central Bank]] starting in 2014 and the [[Bank of Japan]] starting in early 2016 pursued the policy on top of their earlier and continuing [[quantitative easing]] policies. The latter's policy was said at its inception to be trying to "change Japan's 'deflationary mindset.'" In 2016 [[#Negative interest on central bank reserves|Sweden, Denmark]] and Switzerland—not directly participants in the [[Euro]] currency zone—also had NIRPs in place.<ref>Nakamichi, Takashi, Megumi Fujikawa and Eleanor Warnock, [https://www.wsj.com/articles/bbank-of-japan-introduces-negative-interest-rates-1454040311 "Bank of Japan Introduces Negative Interest Rates" (possibly subscription-only)]{{Dead link|date=October 2022 |bot=InternetArchiveBot |fix-attempted=yes }}, Wall Street ''Journal'', January 29, 2016. Retrieved 2016-01-29.</ref>

Countries such as Sweden and Denmark have set negative interest on reserves—that is to say, they have charged interest on reserves.<ref>{{cite journal|last=Goodhart|first=C.A.E.|title=The Potential Instruments of Monetary Policy|date=January 2013|journal=Financial Markets Group Paper|issue=Special Paper 219|url=http://www2.lse.ac.uk/fmg/workingPapers/specialPapers/PDF/SP219.pdf|access-date=13 April 2013|at=9–10|publisher=London School of Economics|issn=1359-9151}}</ref><ref>{{cite journal|last=Blinder|first=Alan S.|title=Revisiting Monetary Policy in a Low-Inflation and Low-Utilization Environment|journal=Journal of Money, Credit and Banking|date=February 2012|volume=44|issue=Supplement s1|pages=141–146|doi=10.1111/j.1538-4616.2011.00481.x}}</ref><ref>{{cite web|last=Thoma|first=Mark|title=Would Lowering the Interest Rate on Excess Reserves Stimulate the Economy?|url=http://economistsview.typepad.com/economistsview/2012/08/would-lowering-the-interest-rate-on-excess-reserves-stimulate-the-economy.html|work=Economist's View|access-date=13 April 2013|date=August 27, 2012}}</ref><ref>{{cite web|last=Parameswaran|first=Ashwin|title=On The Folly of Inflation Targeting In A World Of Interest Bearing Money|url=http://www.macroresilience.com/2013/01/07/on-the-folly-of-inflation-targeting-in-a-world-of-interest-bearing-money/|work=Macroeconomic Resilience|access-date=13 April 2013|date=2013-01-07}}</ref>

In July 2009, Sweden's central bank, the [[Riksbank]], set its policy repo rate, the interest rate on its one-week deposit facility, at 0.25%, at the same time as setting its overnight deposit rate at −0.25%.<ref name="sweden-negative-repo-table">{{Cite web|url = http://www.riksbank.se/en/Interest-and-exchange-rates/Repo-rate-table/|title = Repo rate table|access-date = 21 August 2013|publisher = Sveriges Riksbank|archive-url = https://web.archive.org/web/20130205235742/http://www.riksbank.se/en/Interest-and-exchange-rates/Repo-rate-table/|archive-date = 5 February 2013|url-status = dead}}</ref> The existence of the negative overnight deposit rate was a technical consequence of the fact that overnight deposit rates are generally set at 0.5% below or 0.75% below the policy rate.<ref name="sweden-negative-repo-table" /><ref name=":0">{{Cite news |url= http://www.ft.com/cms/s/0/5d3f0692-9334-11de-b146-00144feabdc0.html |archive-url=https://ghostarchive.org/archive/20221210/http://www.ft.com/cms/s/0/5d3f0692-9334-11de-b146-00144feabdc0.html |archive-date=2022-12-10 |url-access=subscription |title=Bankers watch as Sweden goes negative |first1=Andrew |last1=Ward |first2=David |last2=Oakley |work=[[Financial Times]] |location =London |date=27 August 2009}}</ref> The Riksbank studied the impact of these changes and stated in a commentary report<ref>{{Cite web|url = http://www.riksbank.se/upload/Dokument_riksbank/Kat_publicerat/Ekonomiska%20kommentarer/2009/ek_kom_no11_09eng.pdf|title = The lower limit of the Riksbank's repo rate|date = 30 September 2009|publisher = Sveriges Riksbank|access-date = 21 August 2013|last1 = Beechey|first1 = Meredith|last2 = Elmér|first2 = Heidi}}</ref> that they led to no disruptions in Swedish financial markets.