Define: Zero Interest Rate

UK Accounting Glossary

Definition: Zero Interest Rate

Quick Summary of Zero Interest Rate

The monetary policy of maintaining a nominal interest rate of 0%.

What is the dictionary definition of Zero Interest Rate?

Dictionary Definition

This is the monetary policy of a maintaining a nominal interest rate of Zero per cent (0%).

Once a zero interest rate has been achieved it’s not possible to stimulate the economy by reducing the interest rate any further.

This means that other forms of monetary policy, such as qualitative easing (for example), will have to be used instead.

However, in exceptional circumstance, a monetary policy authority may be able to push key interest rates below zero within the short term.

Full Definition of Zero Interest Rate

Zero Interest Rate FAQ's

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Zero Interest Rate. Payroll & Accounting Heaven Ltd. July 20, 2019
Chicago Manual of Style (CMS):
Zero Interest Rate. Payroll & Accounting Heaven Ltd. (accessed: July 20, 2019).
American Psychological Association (APA):
Zero Interest Rate. Retrieved July 20, 2019, from website:

Definition Sources

Definitions for Zero Interest Rate are sourced/syndicated from:

  • Oxford Dictionary Of Economics
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 6th May 2019.