Pokaż uproszczony rekord

Interest Rate Pass‑through and Monetary Policy Transmission in SADC and EAC Countries: Implications for Monetary Union

dc.contributor.authorOyetade, Damilola
dc.contributor.authorRedda, Ephrem Habtemichael
dc.contributor.authorMuzindutsi, Paul‑Francois
dc.date.accessioned2025-01-07T13:37:00Z
dc.date.available2025-01-07T13:37:00Z
dc.date.issued2024-12-19
dc.identifier.issn1508-2008
dc.identifier.urihttp://hdl.handle.net/11089/54097
dc.description.abstractSouthern African Development Community (SADC) and East African Community (EAC) countries are exploring the feasibility of establishing a monetary union. This study assesses the economic integration in the two blocs, using the interest rate pass‑through mechanism to determine the convergence of interest rates in the two regions. This study evaluates the potential for forming a monetary union using the panel autoregressive distributive lag model (PARDL) with monthly data from January 2000 to December 2022, including central bank and retail bank interest rates. The dynamic common correlated effects (DCCE) results suggest that the complete interest pass‑through to retail bank rates does not hold for the two blocs. Secondly, there are varying speeds of adjustment for banking rates in response to changes in policy rates. In addition, the incomplete interest‑rate pass‑through for the two blocs indicates the presence of banking market imperfections, weak banking asset quality, and information asymmetries, which are more pronounced in the EAC. Monetary policymakers should implement measures to enhance the efficiency and competitiveness of their financial systems to minimise these imperfections.en
dc.description.abstractKraje Południowoafrykańskiej Wspólnoty Rozwoju (SADC) i Wspólnoty Wschodnioafrykańskiej (EAC) analizują możliwość ustanowienia unii walutowej. Niniejsze badanie poddaje ocenie proces integracji gospodarczej w obu blokach, wykorzystując mechanizm przenoszenia stóp procentowych w celu określenia konwergencji stóp procentowych w obu regionach. Wykorzystując dane miesięczne od stycznia 2000 r. do grudnia 2022 r., obejmujące stopy procentowe banku centralnego i banków detalicznych, niniejsze badanie ocenia możliwości stworzenia unii walutowej. Zastosowano ilościowe podejście badawcze z wykorzystaniem panelowego modelu autoregresyjnego o rozłożonych opóźnieniach (PARDL).Wyniki uzyskane dzięki zastosowaniu dynamic common correlated effects (DCCE) sugerują, że w obu blokach nie występuje pełne przeniesienie stóp procentowych banku centralnego na stopy banków detalicznych. Po drugie istnieją różne prędkości dostosowań stóp bankowych w odpowiedzi na zmiany stóp procentowych banku centralnego. Ponadto niepełne przeniesienie stóp procentowych w obu blokach wskazuje na obecność niedoskonałości rynku bankowego, słabej jakości aktywów bankowych i asymetrii informacji, przy czym kwestie te są bardziej widoczne w EAC. Aby sprostać tym wyzwaniom, decydenci w obszarze polityki pieniężnej powinni wdrożyć środki mające na celu zwiększenie wydajności i konkurencyjności ich systemów finansowych w celu zminimalizowania tych niedoskonałości.pl
dc.language.isoen
dc.publisherWydawnictwo Uniwersytetu Łódzkiegopl
dc.relation.ispartofseriesComparative Economic Research. Central and Eastern Europe;4pl
dc.rights.urihttps://creativecommons.org/licenses/by-nc-nd/4.0
dc.subjectinterest rate pass‑throughen
dc.subjectfinancial integrationen
dc.subjectmonetary unionen
dc.subjectSADCen
dc.subjectEACen
dc.subjectprzeniesienie stóp procentowychpl
dc.subjectintegracja finansowapl
dc.subjectunia walutowapl
dc.subjectSADCpl
dc.subjectEACpl
dc.titleInterest Rate Pass‑through and Monetary Policy Transmission in SADC and EAC Countries: Implications for Monetary Unionen
dc.title.alternativePrzeniesienie stóp procentowych i transmisja polityki pieniężnej w krajach SADC i EAC: implikacje dla unii walutowejpl
dc.typeArticle
dc.page.number135-150
dc.contributor.authorAffiliationOyetade, Damilola - University of KwaZulu‑Natal, School of Accounting, Economics and Finance, Durban, South Africaen
dc.contributor.authorAffiliationRedda, Ephrem Habtemichael - North‑West University, Faculty of Economic & Management Sciencesen
dc.contributor.authorAffiliationMuzindutsi, Paul‑Francois - University of KwaZulu‑Natal, School of Accounting, Economics and Financeen
dc.identifier.eissn2082-6737
dc.referencesAydin, H.I. (2007), Interest Rate Pass‑Through in Turkey, “Working Paper”, 07/05, Research and Monetary Policy Department, The Central Bank of The Republic of Turkey, pp. 1–42, https://ideas.repec.org/p/tcb/wpaper/0705.html (accessed: 9.09.2023).en
dc.referencesAziakpono, M., Kleimeier, S., Sander, H. (2012), Banking market integration in the SADC countries: Evidence from interest rate analyses, “Applied Economics”, 44 (29), pp. 385–386, https://doi.org/10.1080/00036846.2011.583219en
dc.referencesChudik, A., Pesaran, M.H. (2015), Common correlated effects estimation of heterogeneous dynamic panel data models with weakly exogenous regressors, “Journal of Econometrics”, 188 (2), pp. 393–420, https://doi.org/10.1016/j.jeconom.2015.03.007en
dc.referencesGigineishvili, N. (2011), Determinants of Interest Rate Pass‑Through: Do Macroeconomic Conditions and Financial Market Structure Matter?, “Working Paper”, WP/11/176, International Monetary Fund, pp. 1–19, https://www.elibrary.imf.org/view/journals/001/2011/176/article‑A001‑en.xml (accessed: 7.02.2023).en
dc.referencesCottarelli, C., Kourelis, A. (1994), Financial structure, bank lending rates, and the transmission mechanism of monetary policy, “International Monetary Fund Economic Review”, 41, pp. 58–623, https://www.elibrary.imf.org/view/journals/001/1994/039/article‑A001‑en.xml (accessed: 7.02.2023).en
dc.referencesHenning, C.R. (1996), Europe’s Monetary Union and the United States, “Foreign Policy”, 102, pp. 83–100, https://doi.org/10.2307/1149261en
dc.referencesHofmann, B. (2002), The pass‑through of money market rates to business loan rates in the euro area countries, Center for European Integration Studies (ZEI), University of Bonn, Bonn.en
dc.referencesIris, B.‑F., Howells, P. (2002), Central Banks and Market Interest Rates, “Journal of Post Keynesian Economics”, 24 (4), pp. 569–585, https://doi.org/10.1080/01603477.2002.11490344en
dc.referencesJobarteh, M. (2023), EAC. Geographic Furutes, https://futures.issafrica.org/geographic/recs/eac/#cite‑this‑research (accessed: 9.09.2023).en
dc.referencesLi, X.L., Si, D.K., Ge, X. (2021), China’s interest rate pass‑through after the interest rate liberalization: Evidence from a nonlinear autoregressive distributed lag model, “International Review of Economics & Finance”, 73, pp. 257–274, https://doi.org/10.1016/j.iref.2020.12.031en
dc.referencesLiu, K. (2019), The determinants of China’s lending rates and interest rates pass‑through: A cointegration analysis, “Research in Economics”, 73 (1), pp. 66–71, https://doi.org/10.1016/j.rie.2019.02.002en
dc.referencesMcCarthy, C. (2008), The Roadmap towards Monetary Union in Southern Africa – is the European experience commendable and replicable?, Third GARNET Annual Conference, Bordeaux, Panel IV –2: Monetary and Financial Governance, pp. 1–18, https://www.tralac.org/images/docs/4682/mccarthy‑roadmap‑towards‑monetary‑union‑in‑southern‑africa-20081022.pdf (accessed: 9.09.2023).en
dc.referencesMuzindutsi, P.F., Mposelwa, S. (2021), A Comparative Analysis of the Expectations Hypothesis of the Term Structure of Interest Rates between the BRICS and G7 Countries, “Comparative Economic Research. Central and Eastern Europe”, 24 (2), pp. 87–102, https://doi.org/10.18778/1508-2008.24.13en
dc.referencesNdou, E., Mokoena, T. (2019), Does Economic Policy Uncertainty Impact the Pass‑Through of the Repo_rate to the Bank Lending Rates?, [in:] E. Ndou, T. Mokoena, Inequality, Output‑Inflation Trade‑Off and Economic Policy Uncertainty, Palgrave Macmillan, Cham, pp. 425–435, https://doi.org/10.1007/978-3-030-19803-9_30en
dc.referencesPesaran, M. (2007), A simple panel unit root test in the presence of cross‑section dependence, “Journal of Applied Economics”, 22 (2), pp. 265–312, https://doi.org/10.1002/jae.951en
dc.referencesRedda, E.H. (2021), Convergence Criteria‑guided Regional Economic Integration in SADC and EAC: Lessons from Europe’s Experience, “Journal of African Union Studies”, 10 (3), pp. 39–65, https://doi.org/10.31920/2050-4306/2021/10n3a3en
dc.referencesSander, H., Kleimeier, S. (2006), Interest rate pass‐through in the common monetary area of the SACU countries, “South African Journal of Economics”, 74 (2), pp. 215–229, https://doi.org/10.1111/j.1813-6982.2006.00073.xen
dc.referencesTai, P.N., Sek, S.K., Har, W.M. (2012), Interest Rate Pass‑Through and Monetary Transmission in Asia, “International Journal of Economics and Finance”, 4 (2), pp. 163–174, https://doi.org/10.5539/ijef.v4n2p163en
dc.contributor.authorEmailOyetade, Damilola - OyetadeD@ukzn.ac.za
dc.contributor.authorEmailRedda, Ephrem Habtemichael - Ephrem.Redda@nwu.ac.za
dc.contributor.authorEmailMuzindutsi, Paul‑Francois - MuzindutsiP@ukzn.ac.za
dc.identifier.doi10.18778/1508-2008.27.34
dc.relation.volume27


Pliki tej pozycji

Thumbnail
Nazwa:
135-150_Oyetade_i_in.pdf
Rozmiar:
615.2KB
Format:
PDF
Oglądaj/Otwórz

Pozycja umieszczona jest w następujących kolekcjach

Pokaż uproszczony rekord

https://creativecommons.org/licenses/by-nc-nd/4.0
Poza zaznaczonymi wyjątkami, licencja tej pozycji opisana jest jako https://creativecommons.org/licenses/by-nc-nd/4.0