Positive Interest Rate Policy
a.k.a. PIRP
The normal state of affairs where a central bank's key rate is above zero; used to contrast with zero or…
In plain English
The normal state of affairs where a central bank's key rate is above zero; used to contrast with zero or negative rate policies.
Positive interest rate policy (PIRP) just means a central bank's main rate is above zero. For most of history that went without saying. The term became useful after many central banks spent years at zero or even below zero. Talk of "returning to PIRP" signals a central bank climbing back to normal ground.
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