There are 5 developed countries have made decisions to operate in the negative interest rates environment, see how the rates are determined in each of these countiries.
1. Euro Area (ECB)
a) Interest Rate (ECB): ECB benchmark interest rate is set by the Governing Council of the European Central Bank. The primary objective of the ECB’s monetary policy is to maintain price stability which is to keep inflation below, but close to 2 percent over the medium term. In times of prolonged low inflation and low interest rates, ECB may also adopt non-standard monetary policy measures, such as asset purchase programmes.
b) Interbank Rate: 3 Month euro LIBOR interest rate is the average interest rate at which a LIBOR contributor bank can obtain unsecured funding in the London interbank market for a three month period in euros.
2. Denmark (Danmarks Nationalbank)
a) Interest Rate - (Certificate of Deposit): Interest rates decisions are taken by the Board of Governors of the Central Bank of Denmark (Danmarks Nationalbank). The main interest rate is the certificates of deposit rate. The Danish central bank follows the path set by the ECB and the key rate will be raised or lowered when the ECB changes the refinance rate.
b) Interbank Rate: 3 Month euro LIBOR interest rate is the average interest rate at which a LIBOR contributor bank can obtain unsecured funding in the London interbank market for a three month period in euros.
3. Switzerland (SNB)
a) Interest Rate (SNB): In Switzerland, interest rates decisions are taken by the Swiss National Bank. The official interest rate is the three-month Swiss franc Libor. The SNB regulates the three-month Libor indirectly through its main financing and liquidity-absorbing operations, which comprise short-term repo transactions.
The Swiss National Bank (SNB) is maintaining its expansionary monetary policy. The target range for the three-month Libor remains at between –1.25% and –0.25%, and interest on sight deposits at the SNB is unchanged at –0.75%.
b) Interbank Rate: The three month Swiss Franc LIBOR interest rate is the average interest rate at which a LIBOR contributor bank can obtain unsecured funding in the London interbank market for a three month period in Swiss Francs.
4. Sweden (The Riksbank)
a) Interest Rate (Repo Rate): Benchmark interest rate is set by the Executive Board of the Central Bank of Sweden (The Riksbank). The main interest rate is the repo rate which is the rate of interest at which banks can borrow or deposit funds at the Riksbank for a period of seven days.
b) Interbank Rate: In Sweden, the interbank rate is the rate of interest charged on short-term loans made between banks.
5. Japan (BOJ)
a) BOJ Interest Rate (Discount Rate): Rates are set by the Bank of Japan's Policy Board in its Monetary Policy Meetings. The BoJ's official interest rate is the Discount Rate. Monetary Policy Meetings produce a guideline for money market operations in inter-meeting periods and this guideline is written in terms of a target for the uncollateralized overnight call rate.
b) Interbank Rate: 3 Month Yen LIBOR interest rate is the average interest rate at which a LIBOR contributor bank can obtain unsecured funding in the London interbank market for a 3 Month period in Japanese Yen.

As of March of 2016, there are 6 more of developed countries holding Interest Rates very near Zero but remain positive. Next Editorial will have Part II dedicated to the Actual Effects of Negative Interest Rates.
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