This paper examines the velocity and asymmetry in the response of bank interest rates to monetary policy shocks. Using … retail bank interest rates in Italy in the period 1985-2002. The main results of the paper are: 1) the speed in adjustment of … bank interest rates to monetary policy changes have significantly increased after the introduction of the 1993 Consolidated …

their target level; and (iii) the central bank, ignoring the exact mechanism used by private agents to form expectations … this assumption. The set of macroeconomic projections released by the central bank crucially affects the results in terms …

Whether a central bank should share with the public its views about the future evolution of short term interest rates … nature of this forecast, it could also undermine the credibility of the central bank. We provide new evidence on the effects …, where the central bank releases interest rate projections, we find that market expectations react significantly and …

We find evidence of a bank lending channel for the euro area operating via bank risk. Financial innovation and the new … ways to transfer credit risk have tended to diminish the informational content of standard bank balance-sheet indicators …. We show that bank risk conditions, as perceived by financial market investors, need to be considered, together with the …

The availability of new harmonized data on bank interest rates allows a rigorous assessment to be made of cross …