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Deposit interest rate pass-through in Central and Eastern European countries before and after 2021

Gábor Hajnal et al.

Central Bank Review2025https://doi.org/10.1016/j.cbrev.2025.100204article
ABDC C
Weight
0.50

What the paper says

The study analyzes interest rate pass-through for household and corporate deposits in specific markets in the Central and Eastern European (CEE) region, with a focus on the tightening cycle that began in mid-2021. This period is of particular interest to monetary policy, as sharp rate hikes by central banks, in response to a high inflationary environment, followed a period characterized by an abundance of liquidity. We examine the relationship between interbank and deposit interest rates using two methods: wavelet transform and error-correction model. Based on the wavelet analysis, we found a weakening of pass-through and a slowdown in the repricing of deposit interest rates during the tightening cycle across the countries of the CEE region, particularly in the household segment. Using error-correction models, we observe a consistent weakening in both the degree and speed of interest rate pass-through in the Hungarian and Polish deposit markets during the tightening cycle. The extent of pass-through declined most in the Hungarian household deposit market among all CEE countries.

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https://doi.org/https://doi.org/10.1016/j.cbrev.2025.100204

Or copy a formatted citation

@article{gábor2025,
  title        = {{Deposit interest rate pass-through in Central and Eastern European countries before and after 2021}},
  author       = {Gábor Hajnal et al.},
  journal      = {Central Bank Review},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1016/j.cbrev.2025.100204},
}

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Deposit interest rate pass-through in Central and Eastern European countries before and after 2021

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.