Peering beyond the veil of aggregate bank lending rate dynamics: Insights into credit-level pricing and composition effects
During the recent tightening and easing cycle, the aggregate bank lending rate to firms in the euro area increased by less than the rise in
Geopolitics as a monetary shock: The ‘silent tightening’ in the European banking system
Geopolitical tensions have once again seized the centre stage of macroeconomic policy debates. From Russia’s ongoing war in Ukraine to instability in the Middle East,
Monetary policy transmission through cross-selling banks
When central banks raise or lower policy rates, banks typically pass these changes through only incompletely to the interest rates they pay on customer deposits.
The impact of interest: How loan rates shape firm investment
Monetary policy moves aggregate investment, but the underlying drivers remain unclear. This column opens the black box with a German firm survey. A one percentage
Households’ inaction in the deposit market
The sharp rise in interest rates since 2021 has not been matched by equal increases in household savings rates in advanced economies. This column uses
Details matter: How loan pricing affects monetary policy transmission in the euro area
Classifying loans as fixed-rate or floating-rate fails to fully capture their distinct sensitivity to changes in ECB policy rates. This column analyses the maturity of
Communicating monetary policy by a committee: Echoes that move markets
Central banks rarely speak with one voice. At the Federal Reserve, for instance, each official brings a distinct perspective, and markets parse every speech for
