## Retail Bank Interest Rate Pass-Through: Is Chile Atypical?

_IMF Working Papers, May 1, 2003_

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## Bibliographic details
- Authors: Alessandro Rebucci, Marco A Espinosa-Vega
- Published: May 1, 2003
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451853629.001

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### Summary of findings
- The paper investigates empirically the pass-through of money market interest rates to retail banking interest rates in Chile, the United States, Canada, Australia, New Zealand, and five European countries.
- Overall conclusion: Chile's pass-through does not appear atypical.
- Measured pass-through in Chile is incomplete, as in most countries considered.
- Chile's pass-through is faster than in many other countries considered and is comparable to that in the United States.
- No significant evidence of asymmetry in Chile's pass-through across states of the interest rate or monetary policy cycle.
- Some evidence of parameter instability around the time of the Asian and Russian crises.
- No evidence that the switch to a more flexible exchange rate regime in 1999 and the "nominalization" of Chile's interest rate targets in 2001 have affected significantly the pass-through process.

### Methodology
- Empirical approach: standard error-correction model used to measure interest rate pass-through across countries.

### Subjects and keywords
- Subjects: Banking, Central bank policy rate, Deposit rates, Financial markets, Financial services, Interbank rates, Market interest rates, Money markets
- Keywords: bank interest, banking rate, Central Bank, Central bank policy rate, Deposit rates, Europe, Interbank rates, interest rate, interest rate pass-through, Interest Rates, lending rate, loan rate stickiness, Market interest rates, mean lag, money market rate, Money markets, Pass-Through, pass-through asymmetry, pass-through incompleteness, pass-through mechanism, rate, rate stickiness, treasury bill, UF rate, WP

_International Monetary Fund. Retail Bank Interest Rate Pass-Through: Is Chile Atypical? IMF Working Papers 2003, 112 (2003)._

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/30/retail-bank-interest-rate-pass-through-is-chile-atypical-16513_