This paper estimates the interest rate pass-through in Cabo Verde. Using monthly data since 2001, we estimate a limited pass-through of monetary policy to banks’ lending rates: a 1-percentage-point policy rate change leads to a 0.19–0.28 increase in average lending rates and 0.13–0.23 in long-term rates. Pass-through is roughly twice as strong during tightening than easing cycles but remains weak overall, including in the current cycle started in May 2023, underscoring challenges for monetary policy transmission.
Albuquerque et al. (Sun,) studied this question.