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During a recession, banks often cut interest rates to encourage borrowing and investing (an attempt to stimulate the economy). Taxes and government spending   4 Sep 2019 That didn't happen; the rate is below 1.5 percent. For some, the reason rates remain startlingly low is because central banks, and the Fed  21 Feb 2019 Get Ready For Negative Interest Rates When Next Recession Hits It will clearly lack the room to do so the next time around. which implemented negative rates —effectively taxes on bank deposits during the last downturn.

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