LatAm policy transmission matches historical norm – paper

Pass-through stronger in consumer and corporate lending, Bank of Spain study finds

interest-rates-lines

Monetary policy transmission in Latin America is stronger for consumer and corporate credits and weaker for mortgage lending, a Bank of Spain paper has found.

The paper, published on April 2, observes the pass-through of the policy rate to bank lending in Brazil, Chile, Colombia, Mexico and Peru – the five largest Latin American economies with inflation-targeting regimes.

The authors – María Alejandra Amado, Luis Molina, Wilfredo Díaz and Juan Quiñonez – analyse how the central banks’ policy rates

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