The negative policy rate – how has it affected market rates?

The negative policy rate has had a strong pass-through to bond market yields and lending rates to firms. Lending rates to households have also fallen, although the initial pass-through was weaker. To sum up, negative policy rates have contributed to making monetary policy more expansionary. This is described by Riksbank economists Henrik Erikson and David Vestin in the Staff memo "Pass-through at Mildly Negative Policy Rates", which is published today.


The Staff memo was written by Henrik Eriksson and David Vestin from the Riksbank's Monetary Policy Department.

 

About Staff memos

In Staff memos, Riksbank employees can publish longer analyses in their own names. The opinions expressed in Staff memos are those of the authors and are not to be seen as the Riksbank's standpoint.

Contact: Presstjänsten 08-787 02 00
Updated 22/01/2019