The pass-through of European monetary tightening to bank rates has been “weaker and slower” during the latest cycle, according to a working paper from the International Monetary Fund.

Using data from 30 European countries, including 12 eurozone members, IMF economists assessed the degree to which policy rate rises had been passed through to seven different market interest rates.

The paper’s authors say transmission varies widely across countries. However, on average banks have been slower to pass