Mexico : Selected Issues

Author/Editor:

International Monetary Fund. Western Hemisphere Dept.

Publication Date:

November 22, 2016

Electronic Access:

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Summary:

This Selected Issues paper analyzes transmission of monetary policy rates to lending and deposit rates in Mexico. The results show that transmission of the policy rate to market rates is statistically significant in all cases, except for mortgage rates. For sight deposits, pass-through is low, with a 1 percentage point increase in the policy rate leading to a 0.2 percentage point rise in the deposit rate. For term deposits the pass-through is stronger, but remains below unity at 0.7. The pass-through to both lending and deposit rates is very rapid. The dynamic specifications show that pass-through is significant in either the current or the following month, and the long-term impact is achieved during the second month.

Series:

Country Report No. 16/360

Subject:

English

Publication Date:

November 22, 2016

ISBN/ISSN:

9781475556032/1934-7685

Stock No:

1MEXEA2016003

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

37

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