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Monetary Policy in India Transmission to Bank Interest Rates

This paper provides new evidence on the credit channel of monetary policy transmission in India. Using stepwise estimation of vector error correction models, the analysis finds significant, albeit slow, pass-through of policy rate changes to bank interest rates in India. There is evidence of asymmet...

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Bibliographic Details
Main Author: Das, Sonali
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2015
Series:IMF Working Papers
Subjects:
Depository Institutions
Interest Rates
Credit
Banks
Finance
Prime Rates
Banks And Banking
Monetary Economics
Financial Services
Saving And Capital Investment
Monetary Policy, Central Banking, And The Supply Of Money And Credit: General
Micro Finance Institutions
Mortgages
Economic Development: Financial Markets
Money
Deposit Rates
Repo Rates
Bank Credit
Banking
Interest Rates: Determination, Term Structure, And Effects
Monetary Policy
Money And Monetary Policy
Corporate Finance And Governance
Central Bank Policy Rate
India
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Collection: International Monetary Fund - Collection details see MPG.ReNa
Description
Summary:This paper provides new evidence on the credit channel of monetary policy transmission in India. Using stepwise estimation of vector error correction models, the analysis finds significant, albeit slow, pass-through of policy rate changes to bank interest rates in India. There is evidence of asymmetric adjustment to monetary policy: the lending rate adjusts more quickly to monetary tightening than to loosening. In addition, the speed of adjustment of deposit and lending rates to changes in the policy rate has increased in recent years
Physical Description:33 pages
ISBN:9781513598796

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