Interest Rate Pass-Through Since the Financial Crisis

10 Pages Posted: 28 Apr 2014

See all articles by Annamaria Illes

Annamaria Illes

Bank for International Settlements (BIS)

Marco J. Lombardi

Bank for International Settlements (BIS) - Monetary and Economic Department

Date Written: September 2013

Abstract

Policy rates in advanced economies are at record lows and central banks have resorted to unconventional policy tools, but there are concerns that the low policy rates have not been transmitted to lending rates for households and non-financial firms. In this special feature, we investigate whether the pass-through of monetary policy to rates on bank loans to nonfinancial firms has been impaired in the aftermath of the Great Recession. Our results suggest that the difference between lending rates to the non-financial corporate sector and policy rates is currently close to the pre-crisis level in the United States and Germany, but remains higher in peripheral euro area countries.

JEL Classification: E43, E52, C32

Suggested Citation

Illes, Annamaria and Lombardi, Marco Jacopo, Interest Rate Pass-Through Since the Financial Crisis (September 2013). BIS Quarterly Review, September 2013, Available at SSRN: https://ssrn.com/abstract=2401570

Annamaria Illes (Contact Author)

Bank for International Settlements (BIS) ( email )

No Address Available

Marco Jacopo Lombardi

Bank for International Settlements (BIS) - Monetary and Economic Department ( email )

Centralbahnplatz 2
CH-4002 Basel
Switzerland
+41612809492 (Phone)

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