Saving, portfolio and loan decisions of households when interest rates are very low – survey evidence for Austrian households
Do Austrian households adapt their savings and loan decisions in an ultra-low interest rate environment? To answer this question, we analyzed a special OeNB barometer survey conducted in spring 2015 that allows us to assess household interest rate perceptions as well as their impact on saving, portfolio allocation and borrowing decisions. Overall, we find that the very low interest rates were only one of several determinants in savings and loan decisions and have had only a small effect so far. The impact of the ultra-low interest rate environment on portfolio choice is also quite limited. Households that did adapt their portfolio often showed a stronger preference for savings with savings and loan associations than for other options. Furthermore, we observe a shift to real assets. Portfolio rebalancing into riskier assets is not widespread. Many households at the time of the survey considered circumstances relatively favorable for taking out loans. However, this does not imply that loan demand increased strongly, as borrowing decisions are also affected by other, potentially more important determinants. If they were faced with higher loan installments, most households would cut consumption expenditures. The survey results may be useful in assessing e.g. the effectiveness of monetary policy. The modest impact of ultra-low interest rates on savings and portfolio rebalancing into riskier assets suggests that ultra-low interest rates have a limited ability to stimulate aggregate demand through the risk-taking and portfolio rebalancing channels, at least in the case of households in Austria.
Volume (Year): (2016)
Issue (Month): 1 ()
|Contact details of provider:|| Postal: P.O. Box 61, A-1011 Vienna, Austria|
Phone: +43/1/404 20 7405
Fax: +43/1/404 20 7499
Web page: http://www.oenb.at
More information through EDIRC
|Order Information:|| Postal: Oesterreichische Nationalbank, Documentation Management and Communications Services, Otto-Wagner Platz 3, A-1090 Vienna, Austria|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Martin Browning & Annamaria Lusardi, 1996.
"Household Saving: Micro Theories and Micro Facts,"
Journal of Economic Literature,
American Economic Association, vol. 34(4), pages 1797-1855, December.
- Martin Browning & Annamaria Lusardi, 1995. "Household Saving: Micro Theories and Micro Facts," Department of Economics Working Papers 1995-02, McMaster University.
- Martin Browning & Annamaria Lusardi, 1996. "Household Saving: Micro Theories and Micro Facts," Discussion Papers 96-01, University of Copenhagen. Department of Economics.
- Pirmin Fessler & Peter Mooslechner & Martin Schürz, 2012. "Eurosystem Household Finance and Consumption Survey 2010 First Results for Austria," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 3, pages 23-62. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:onb:oenbmp:y:2016:i:1:b:2. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Claudia Kwapil)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.