TY - JOUR
T1 - Transfer of the reference rate for lending and deposit rates
T2 - The case of mexico, 1995-2013
AU - Benavides-Perales, Guillermo
AU - Téllez-León, Isela Elizabeth
AU - Venegas-Martínez, Francisco
N1 - Publisher Copyright:
© 2015, ASERS Publishing House. All rights reserved.
PY - 2015/12/1
Y1 - 2015/12/1
N2 - This paper examines whether a lag in the adjustment of lending is and deposit interest rates due to changes in monetary policy rate. We use an asymmetric error correction model to study the responses of interest rates since the lending and deposit rates adjust with different dynamics to the equilibrium level due to changes in the reference rate. Specifically, the asymmetric model allows examining differences when the interest rates are on or below their equilibrium level. Finally, we find a statistically significant relationship between lending and borrowing rates with the reference rate; the relationship is positive and slightly higher for the lending rate than for the deposit rate.
AB - This paper examines whether a lag in the adjustment of lending is and deposit interest rates due to changes in monetary policy rate. We use an asymmetric error correction model to study the responses of interest rates since the lending and deposit rates adjust with different dynamics to the equilibrium level due to changes in the reference rate. Specifically, the asymmetric model allows examining differences when the interest rates are on or below their equilibrium level. Finally, we find a statistically significant relationship between lending and borrowing rates with the reference rate; the relationship is positive and slightly higher for the lending rate than for the deposit rate.
KW - Econometric modeling
KW - Lending and deposit interest rates
KW - Monetary policy
UR - http://www.scopus.com/inward/record.url?scp=84956704231&partnerID=8YFLogxK
M3 - Artículo
SN - 1843-6110
VL - 10
SP - 1159
EP - 1160
JO - Journal of Applied Economic Sciences
JF - Journal of Applied Economic Sciences
IS - 7
ER -