Discussion Paper

What determines passthrough of policy rates to deposit rates in the euro area?


Abstract: Interest rates on bank deposits are sticky and move only sluggishly following changes in central bank policy rates. As deposits are typically the largest share of bank liabilities, deposit rate stickiness plays a key role for bank funding costs and profitability.

https://doi.org/10.17016/2380-7172.3297

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Bibliographic Information

Provider: Board of Governors of the Federal Reserve System (U.S.)

Part of Series: FEDS Notes

Publication Date: 2023-07-28

Number: 2023-07-28-2