Transmission of monetary policy have saveral channels, and one of them is through interest rate channel. Using banks data in Indonesia for period 2006-2016, this study attempt to measure the change of bank's interest rate toward the change in central bank's policy rate, by seeing the momentum of interest rate pass through using eror-correction model. The results show the adjustments of retail bank rates as between loans and deposit, between type, and across maturities are differet. The results provide some evidences about the inefficiency of monetary policy through interest rate channel of Indonesia.
|Publication status||Published - 2017|
|Event||International Conference on Finance, Management and Business (ICFMB) - ID, Jakarta, Indonesia|
Duration: 1 Jan 2017 → …
|Conference||International Conference on Finance, Management and Business (ICFMB)|
|Period||1/01/17 → …|
- Bank, Interest rate pass through, central bank policy rate, commercial bank interest rate, Indonesia.