摘要： Savers have an incentive to switch from deposits to cash when nominalinterest rates fall sufficiently below zero. The costs of storing and insuring cash dictate the effective lower boundin Canada, which is likely to be around -50 basis points. The pass-through of monetary policy changes to consumer and businessborrowing rates may be only partial when rates are low or negative. The Bank’s framework for the implementation of monetary policy canaccommodate negative rates.
