Interest Rate Pass-Through in Romania and Other Central European Economies
November 1, 2004
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Summary
Interest rate pass-through from policy interest rates to market rates and inflation has been hypothesized to play a lesser role in Romania than in other Central European transition economies. This paper tests this hypothesis and concludes that it cannot be supported by the data. Hence pass-through in Romania is concluded to be in line with that in comparable economies in the region. Moreover, the interest rate pass-through has become more pronounced over time.
Subject: Banking, Central bank policy rate, Commercial banks, Deposit rates, Financial institutions, Financial services, Loans, Market interest rates
Keywords: Baltics, Central and Eastern Europe, Central bank policy rate, Central European Economies, Commercial banks, Deposit rates, interest rate, interest rate channel, interest rate instrument, interest rate pass-through, Loans, market, Market interest rates, market loan rate, market rate, Monetary policy transmission, pass-through, pass-through in Romania, rate, Romania, Slovak coefficient, WP
Pages:
20
Volume:
2004
DOI:
Issue:
211
Series:
Working Paper No. 2004/211
Stock No:
WPIEA2112004
ISBN:
9781451874877
ISSN:
1018-5941
