EXPLAINER-How do negative interest rates work?

Interest rates are part of the main drivers of the Global economy. The European central bank (ECB) introduced negative rates in 2014, with its deposit rate currently -0.5%; while the Bank of Japan (BOJ) uses aggressive asset purchases to guide short-term rates to -0.1%. Under a negative rate policy, financial institutions are required to pay interest for keeping excess cash beyond regulator’s liquidity requirements with the central bank, which makes them, lend more to businesses and consumers, helping Economic growth.
Reuters