Monetary policy transmission to the bank loans market in an emerging economy : Evidence from INDIA
By: Phul, Samahita
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Material type: 
BookPublisher: Economic & Political Weekly Description: 61(11), Mar 14, 2026: p.51-59.
In:
Economic & Political WeeklySummary: This paper examines whether the pass-through of monetary policy to the bank loans market is asymmetric in emerging market economies, using India as a case study. An ARDL/NARDL framework is employed to analyse the transmission of key monetary policy instruments, namely bank rate, cash reserve ratio and repo rate to lending and deposit rates across two distinct monetary policy regimes: the multiple indicator targeting regime and the flexible inflation targeting regime. The findings indicate a marked improvement in both the magnitude and speed of monetary policy pass-through during the FIT regime. The evidence suggests that, in emerging market economies, inflation targeting frameworks may be more effective than alternative monetary policy approaches in influencing bank lending and deposit behaviour.-Reproduced
https://www.epw.in/journal/2026/11/special-articles/monetary-policy-transmission-bank-loans-market.html
| Item type | Current location | Call number | Vol info | Status | Date due | Barcode |
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Articles
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Indian Institute of Public Administration | 61(11), Mar 14, 2026: p.51-59 | Available | AR138714 |
This paper examines whether the pass-through of monetary policy to the bank loans market is asymmetric in emerging market economies, using India as a case study. An ARDL/NARDL framework is employed to analyse the transmission of key monetary policy instruments, namely bank rate, cash reserve ratio and repo rate to lending and deposit rates across two distinct monetary policy regimes: the multiple indicator targeting regime and the flexible inflation targeting regime. The findings indicate a marked improvement in both the magnitude and speed of monetary policy pass-through during the FIT regime. The evidence suggests that, in emerging market economies, inflation targeting frameworks may be more effective than alternative monetary policy approaches in influencing bank lending and deposit behaviour.-Reproduced
https://www.epw.in/journal/2026/11/special-articles/monetary-policy-transmission-bank-loans-market.html
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