Spread between the euro short-term rate (€STR) and the deposit facility rate
Rationale This article analyses the factors that are contributing to the widening of the spread between the euro short-term rate (€STR) and the deposit facility rate, with a view to assessing monetary policy transmission in the Eurosystem. Takeaways •The key factors that explain the behaviour of thi...
| Autores: | , , , |
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| Tipo de recurso: | artículo |
| Fecha de publicación: | 2023 |
| País: | España |
| Institución: | Banco de España |
| Repositorio: | Repositorio Institucional del Banco de España |
| OAI Identifier: | oai:repositorio.bde.es:123456789/33452 |
| Acceso en línea: | https://repositorio.bde.es/handle/123456789/33452 |
| Access Level: | acceso abierto |
| Palabra clave: | Euro short-term rate Deposit facility Monetary policy transmission Money market Money market statistics Eurosystem balance sheet Excess liquidity Non-bank financial institutions Bancos centrales y otras autoridades monetarias Política monetaria E52 E58 |
| Sumario: | Rationale This article analyses the factors that are contributing to the widening of the spread between the euro short-term rate (€STR) and the deposit facility rate, with a view to assessing monetary policy transmission in the Eurosystem. Takeaways •The key factors that explain the behaviour of this spread are the expansion of the Eurosystem’s balance sheet and the change in the monetary policy stance. •The pass-through of the recent interest rate hikes to money market rates has been effective and cannot explain the widening of the spread. •Once the rate hiking cycle comes to an end, the contraction in the Eurosystem’s balance sheet can be expected to curb or even reverse the trend observed in the spread. |
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