What will happen when the interest rates in Singapore fall below zero?

Hi I doubt loans will be at 0%. As for fixed deposit accounts, as the name suggest, its fixed deposit. So it's fixed from the start you put in the money till maturity.

As for those high yield savings account, yes, high chance the interest rates will drop and we will go back to the days of 0.05%. But highly unlikely it will go negative

My guess would be the negative interest rates

1. would only affect extremely high net value people with millions just sitting in the bank because that would be impossible for them to withdraw in cash and store. This is quite similar to the case of negative oil prices where the cost of storing excess oil is so expensive. paying people to deal with the excess is way cheaper.

2. Our economic growth could start to growing horizontally like japan’s because of similar demographics (in the long run as after effect)

3. Crypto? 🧐

4. Might increase consumption, stimulating the economy again in the short run. Since neg i/r would mean banks pay people to borrow money and penalise those that dont.