Zero Interest Rate Policy (ZIRP)

ZIRP stands for the ‘Zero interest rate policy’ in which the concept that describes the conditions characterized by the low nominal interest rates. The ZIRP considered as the unconventional monetary policy of the instrument that connected with the slow economic growth, deflation and the delevaraging. The ZIRP is an important milestone in monetary policy because the central bank is typically no longer able to reduce nominal interest rates.