How Effective is Monetary Policy Transmission? A Meta-analysis on Interest Rate Pass-Through and Speed of Adjustment

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This paper presents a meta-analysis of the interest rate pass-through, examining the extent and the speed of monetary policy transmission. Using studies since 2017, it integrates symmetric and asymmetric estimates and applies Bayesian Model Averaging to address model uncertainty. The findings reveal significant cross-country variation in pass-through dynamics and highlight key factors that influence transmission lags, especially during post-crisis periods. The study provides robust insights into how central bank rates influence commercial lending rates, thereby contributing to a deeper understanding of monetary policy effectiveness and providing guidance for policymakers seeking to enhance the transmission mechanisms.