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Retail Interest Rate Pass-Through - The Irish Experience

Author

Listed:
  • Don Bredin

    (Central Bank of Ireland)

  • Trevor Fitzpatrick

    (Central Bank of Ireland)

  • Gerard O Reilly

    (Central Bank of Ireland)

Abstract

In this paper, we examine the extent to which changes in the money market interest rate are passed through to a number of retail lending rates between 1980 and 2001. In addition, we analyse the speed of adjustment of these lending rates with respect to such changes in the money market rate. Our main findings are - (1) pass-through from the money market rate to lending rates is not complete (2) the speed of adjustment varies quite considerably across alternative lending rates and (3) there has been significant structural change in the relationship between the money market rate and lending rates both in terms of pass-through and speed of adjustment during this period.

Suggested Citation

  • Don Bredin & Trevor Fitzpatrick & Gerard O Reilly, 2002. "Retail Interest Rate Pass-Through - The Irish Experience," The Economic and Social Review, Economic and Social Studies, vol. 33(2), pages 223-246.
    • Handle: RePEc:eso:journl:v:33:y:2002:i:2:p:223-246
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    References listed on IDEAS

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