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

Main Article Content

Jose Eduardo Gomez-Gonzalez
Banco de la República de Colombia

Eliana González-Molano
Banco de la República de Colombia

Carlos Huertas-Campos
Banco de la República de Colombia

Deicy Cristiano-Botia
Banco de la República de Colombia

Ximena Chavarro-Sanchez
Banco de la República de Colombia

Keywords

Monetary policy transmission, Bank lending, channel, Colombia

Abstract

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).

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Published
Jun 22, 2016
DOI https://doi.org/10.17230/ecos.2016.42.2

Article Details

How to Cite
Gomez-Gonzalez, J. E., González-Molano, E., Huertas-Campos, C., Cristiano-Botia, D., & Chavarro-Sanchez, X. (2016). An evaluation of the transmission of the policy interest rate to the financial system’s interest rates in Colombia. Ecos De Economía, 20(42), 19–45. https://doi.org/10.17230/ecos.2016.42.2
Issue
Vol. 20 No. 42 (2016)
Section
Articles
Supporting Agencies
Banco de la República de Colombia

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