When the Japanese "bubble" economy collapsed in the early 1990's, Japanese bank interest rates stopped at Zero percent.
Simply meaning, with inflation, anyone saving in the bank would see their savings decrease in value each year.
The collapse of our Banking system has meant huge public bailouts or nationalizations to keep our Banks functioning, as debts are higher in some cases than the current market value of the Bank.
Many of our banks have become "toxic" public assets and symbols of financial imprudence.
  Lowering Interest rates means interest on loans and Mortgages mean lower monthly payments to creditors, whilst any savers are encouraged to spend rather than save.
All Governments have used this method to traditionally guide our old economy.
  The difference is this time, our old economy has failed whilst our banks are insolvent, releasing savers funds from "losing" money by saving in banks, whilst creating lower interest rates for creditors.
  One reason senior economic advisors are trying this method, is to ensure that debts are more affordable.
Therefore relieving the debt burden of the banks, and ensuring more people are able to pay back their loans.
  Few people in today's World trust Banks, even if the very same Banks in the old Economy were pillars of financial trust, they have become symbols of greed and gross mismanagement.
  Building that trust and saving "toxic" Banks, will not simply be created by lowering interest rates.
It may be a short term answer to indirectly making credit payments more affordable.
But it may not be the answer to saving or reinventing a banking system that has lost all credit, and symbolizes the collapse of a flawed system.