Interest rate pass-through in Portugal: Interactions, asymmetries and heterogeneities
AbstractThis study looks at and finds interactions—between lending, deposit, and interbank rates—and asymmetries in interactions, in the pass-through to retail bank interest rates in Portugal. We uncover heterogeneous adjustments of bank rates as between sectors, between loans and deposits, and across maturities—which include complete long-run pass-through to corporate lending rates but rigidities for the personal sector, and incomplete long-run adjustment of deposit rates which also adjust asymmetrically. The results shed new light into understanding the behaviour of banks and the transmission mechanism of monetary policy, which is of value to future policy.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Policy Modeling.
Volume (Year): 34 (2012)
Issue (Month): 1 ()
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Web page: http://www.elsevier.com/locate/inca/505735
Interest rate pass-through; Bank interest rates; Transmission mechanism of monetary policy; Asymmetric adjustment; Portugal;
Find related papers by JEL classification:
- E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
- E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
- E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
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