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Bahamas and Barbados: Empirical evidence of interest rate pass-through / Daniel O. Boamah, Mahalia N. Jackman and Nlandu Mamingi.
- Format:
- Book
- Government document
- Author/Creator:
- Boamah, Daniel O., author.
- Language:
- English
- Subjects (All):
- Economic and Social Development.
- Bahamas.
- Barbados.
- Local Subjects:
- Economic and Social Development.
- Bahamas.
- Barbados.
- Physical Description:
- 1 online resource (14 pages)
- Contained In:
- CEPAL Review Vol. 2011, no. 103, p. 115-128 2011:103<115 16840348
- Place of Publication:
- New York : United Nations, 2011.
- System Details:
- data file
- Summary:
- This paper uses an error correction model to investigate empirically the effectiveness of central bank interest rate policy in influencing commercial banks' lending rate behaviour in Barbados and the Bahamas using quarterly data for the period January 1995-April 2007. For Barbados, the study finds that the reaction of commercial bank lending rates to changes in the central bank's policy rate is sticky in the short run, but fully complete in the long run. On average, it takes about four to six quarters for the full effect of changes in the central bank policy rate to be transmitted to the economy via adjustments. For the Bahamas, the reaction of commercial bank lending rates to changes in the central bank policy rate is fully complete in the short run and the long run, owing to a low adjustment cost coupled with the use of moral suasion.
- Notes:
- Title from title screen (viewed May 1, 2017).
- Access Restriction:
- Restricted for use by site license.
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