Interest rate pass-through in Portugal: Interactions, asymmetries and heterogeneities

Manuel Duarte Rocha

Journal of Policy Modeling, 2012, vol. 34, issue 1, 64-80

Abstract: This 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.

Keywords: Interest rate pass-through; Bank interest rates; Transmission mechanism of monetary policy; Asymmetric adjustment; Portugal (search for similar items in EconPapers)
JEL-codes: E43 E52 E58 G21 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (39)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0161893811000664
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jpolmo:v:34:y:2012:i:1:p:64-80

DOI: 10.1016/j.jpolmod.2011.07.010

Access Statistics for this article

Journal of Policy Modeling is currently edited by A. M. Costa

More articles in Journal of Policy Modeling from Elsevier
Bibliographic data for series maintained by Catherine Liu ().