The transmission of monetary policy in Morocco: From policy rate to commercial banks’ lending rates

Mossadak, Anas (2017): The transmission of monetary policy in Morocco: From policy rate to commercial banks’ lending rates. Published in: International Journal of Economics, Commerce and Management , Vol. Vol. V, No. Issue 12 (December 2017): pp. 1055-1070.

Abstract

The main objective of this paper is to explore the impact of monetary policy decisions on the lending rates of commercial banks in Morocco. For this purpose, A Vector Auto regressive (VAR) model is estimated in order to measure the impact of policy rate variations on the commercial lending rates, namely: treasury rate, consumer credit rate, equipment rate and mortgage rate. The main empirical finding is that variations in policy rate impacts the rates of commercial bank and the effect is more important on the short run than on the longer run rates.

• Item Type: MPRA Paper
• Language: English
• Keywords: Monetary policy, Interest rate channel, VAR, Impulse response functions
• Subjects: C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C13 - Estimation: General; C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C54 - Quantitative Policy Modeling; E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E51 - Money Supply ; Credit ; Money Multipliers; E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E52 - Monetary Policy; E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E58 - Central Banks and Their Policies

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