IDEAS home Printed from https://ideas.repec.org/p/aer/wpaper/92864585-523b-4d17-a392-f312030ded55.html
   My bibliography  Save this paper

Interest Rate Pass-Through in Malawi: Implications for Effectiveness of Monetary Policy

Author

Listed:
  • Chiumia, Austin
  • Palamuleni, Arnold

Abstract

This study investigated the interest rate pass-through and its implications for monetary policy effectiveness in Malawi. Using the cost-of-funds approach and monthly data from 2009 to 2015, an autoregressive distributed lag model was estimated. Results suggest that the structure of the banking industry (banking environment) matters. Also, market power is important in understanding the resulting variation in the savings and lending rates across banks in the market as well as the transmission of monetary policy impulses. Overall, our findings suggest that short-term rates as operating target are consistent with inflation targeting as a monetary policy objective.

Suggested Citation

  • Chiumia, Austin & Palamuleni, Arnold, 2021. "Interest Rate Pass-Through in Malawi: Implications for Effectiveness of Monetary Policy," Working Papers 92864585-523b-4d17-a392-f, African Economic Research Consortium.
    • Handle: RePEc:aer:wpaper:92864585-523b-4d17-a392-f312030ded55
    Note: African Economic Research Consortium
    as

    Download full text from publisher

    File URL: http://18.184.231.194/handle/123456789/1972
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aer:wpaper:92864585-523b-4d17-a392-f312030ded55. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Daniel Njiru (email available below). General contact details of provider: https://edirc.repec.org/data/aerccke.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.