Explained: What are negative interest rates and how do they work?

A negative interest means the instead of the bank paying you money to keep in the savings account, you pay the bank to do so. It also means that anyone can borrow money from the bank and pay back less than what they borrowed.

President Donald Trump speaks at the Economic Club of New York at the New York Hilton Midtown in New York, Tuesday, Nov. 12, 2019. (AP Photo: Andrew Harnik)

During a speech to the Economic Club of New York on November 12, US President Donald Trump yet again railed against the US Federal Reserve — the country’s central bank — for having kept the interest rates in the US economy too thus undermining the competitiveness of the US firms. He said his administration had created 7 million jobs — more than three times more than what anyone thought possible before he was elected in November 2016. Trump said that his administration had reduced poverty and launched an economic boom “the likes of which we have never seen before”.