## Monetary Policy Transmission in Ghana: Does the Interest Rate Channel Work?

_IMF Working Papers, November 1, 2011_

## Source details

**Canonical URL:** [Monetary Policy Transmission in Ghana: Does the Interest Rate Channel Work?](https://www.imf.org/en/publications/wp/issues/2016/12/31/monetary-policy-transmission-in-ghana-does-the-interest-rate-channel-work-25379)

## Other formats

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## Bibliographic details
- Authors: Arto Kovanen
- Published: November 1, 2011
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781463925314.001

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### Summary
- Author: Arto Kovanen
- Publication date: November 1, 2011
- Series: Working Paper No. 2011/275; Issue: 275; Volume: 2011; Pages: 32
- DOI: https://doi.org/10.5089/9781463925314.001
- ISBN: 9781463925314; ISSN: 1018-5941; Stock No: WPIEA2011275
- This paper analyzes interest rate pass-through in Ghana using time series and bank-specific data to highlight linkages between policy, wholesale market, and retail market interest rates.

### Major empirical findings
- Wholesale market responses:
  - Responses to changes in the policy interest rate are gradual in the wholesale market.
  - Prolonged deviation in the interbank interest rate from the prime rate illustrate the challenges the Bank of Ghana faces when targeting a short-term money market interest rate.
  - Asymmetries in the wholesale market adjustment possibly relate to monetary policy signaling, weak policy credibility, and liquidity management.
- Retail market pass-through:
  - In the retail market, pass-through to deposit and lending interest rates is protracted and incomplete.

### Subject areas and keywords (as listed in the source)
- Subject: Banking, Central bank policy rate, Deposit rates, Financial institutions, Financial services, Interbank rates, Market interest rates, Treasury bills and bonds
- Keywords: Africa, Central bank policy rate, Deposit rates, interbank interest rate, interbank market, Interbank rates, interest rate channel, interest rate determination, lending interest rates, Market interest rates, monetary policy transmission, money market, policy interest rate, time deposit, transmission process, Treasury bills and bonds, WP

### Publication and access notes
- Publication type: IMF Working Papers
- Format options indicated on the source: Download PDF; More Formats on IMF eLibrary; Order a Print Copy
- Citation example provided: Arto Kovanen. "Monetary Policy Transmission in Ghana: Does the Interest Rate Channel Work?", IMF Working Papers 2011, 275 (2011), accessed 9/17/2026, https://doi.org/10.5089/9781463925314.001

*Source: IMF Working Paper landing page for "Monetary Policy Transmission in Ghana: Does the Interest Rate Channel Work?"*

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/monetary-policy-transmission-in-ghana-does-the-interest-rate-channel-work-25379_