NIRP
Business & Finance abbreviation · Economics
| Stands for | Negative interest-rate policy |
|---|---|
| Categories | Business & Finance |
NIRP stands for Negative interest-rate policy, an economics abbreviation.
Monetary policy in which a central bank sets its policy rate below zero, effectively charging banks for holding excess reserves, to encourage lending and weaken the currency. Several European central banks and the Bank of Japan used it after 2009.
Example: Under NIRP, some Danish banks offered mortgages with slightly negative interest rates.
Usage notes
Sweden's Riksbank introduced a negative deposit rate in 2009, and the European Central Bank cut its deposit rate below zero in 2014, eventually reaching minus 0.5 percent. The Bank of Japan, the last major user, raised its rate above zero in March 2024. Critics say NIRP squeezes bank profits and savers.
Related abbreviations
More economics abbreviations
- MPS – Marginal propensity to save
- MR – Marginal revenue
- NAIRU – Non-accelerating inflation rate of unemployment
- NBER – National Bureau of Economic Research
- NFP – Nonfarm payrolls
- NGDP – Nominal gross domestic product
- NTB – Non-tariff barrier
- ODA – Official development assistance
- PBoC – People's Bank of China
- PCE – Personal consumption expenditures
- PED – Price elasticity of demand
- PIIGS – Portugal, Ireland, Italy, Greece and Spain