Monetary Policy Pass-Through to Interest Rates: Stylized Facts from 30 European Countries
IMF Working Papers, January 12, 2024
Source details
- Canonical URL
- Monetary Policy Pass-Through to Interest Rates: Stylized Facts from 30 European Countries
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Bibliographic details
- Authors: Robert C. M. Beyer, Ruo Chen, Florian Misch, Claire Li, Ezgi O. Ozturk, Lev Ratnovski
- Published: January 12, 2024
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9798400263613.001
Study scope and data
- Authors: Robert C. M. Beyer, Ruo Chen, Florian Misch, Claire Li, Ezgi O. Ozturk, Lev Ratnovski
- Publication date: January 12, 2024
- Sample: seven different bank interest rates in 30 European countries; analysis for the full sample and a subsample of euro area countries
- Pages: 34
- Volume: 2024
- Issue: 009
- Series: Working Paper No. 2024/009
- DOI: https://doi.org/10.5089/9798400263613.001
- Stock No: WPIEA2024009
- ISBN: 9798400263613
- ISSN: 1018-5941
Key stylized findings
- General framing:
- The paper studies the extent to which changes in monetary policy rates lead to changes in loan and deposit rates for households and firms, i.e., “pass-through”, as an ingredient of monetary policy transmission to output and prices.
- Empirical findings:
- The pass-through in the post-pandemic hiking cycle has been heterogeneous across countries and types of interest rates.
- The pass-through has generally been weaker and slower, except for rates of non-financial corporation loans and time deposits in euro area countries.
- Differences in pass-through over time and across countries for most deposit rates are correlated with financial sector concentration, liquidity, and loan opportunities.
- The effects of pass-through to outstanding mortgage rates on monetary transmission to prices and output are heterogeneous across countries.
Subjects and keywords
- Subject: Central bank policy rate, Deposit rates, Economic sectors, Financial institutions, Financial sector, Financial services, Loans, Mortgages
- Keywords: Central bank policy rate, Deposit rates, Europe, Financial sector, Loans, Monetary Policy Pass-Through, Monetary Policy Transmission, Mortgages, NFC loan rate, pass-through to rate, transmission to output
Publication and access notes
- Publication type: IMF Working Papers
- The working paper is presented on the IMF web landing page with formats and eLibrary access options described on the page.
IMF Working Paper — Monetary Policy Pass-Through to Interest Rates: Stylized Facts from 30 European Countries (Working Paper No. 2024/009, January 12, 2024).
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- Working Paper