An evaluation of the transmission of the policy interest rate to the financial system's interest rates in Colombia

This paper studies monetary policy transmission using several statistical tools. We find that the relationships between the policy interest rate and the financial system's interest rates are positive and statistically significant, and transmission is complete eight months after policy shocks oc...

Full description

Saved in:
Bibliographic Details
Published in:Ecos de economía 2016-01, Vol.20 (42), p.19
Main Authors: Gomez-Gonzalez, Jose Eduardo, González-Molano, Eliana, Huertas-Campos, Carlos, Cristiano-Botia, Deicy, Chavarro-Sanchez, Ximena
Format: Article
Language:Spanish
Subjects:
Analysis
Financial services
Interest rates
Monetary policy
Regulation of financial institutions
Studies
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:This paper studies monetary policy transmission using several statistical tools. We find that the relationships between the policy interest rate and the financial system's interest rates are positive and statistically significant, and transmission is complete eight months after policy shocks occur. The speed of transmission varies according to the type of interest rates. Transmission is faster for interest rates on loans provided to households, and is particularly rapid and complete for rates on preferential commercial loans. Transmission is slower for credit card and mortgage rates, due to regulatory issues (interest rate ceilings).
ISSN:1657-4206
2462-8107