Rate Hikes and Bank Spikes: An Empirical Study of Monetary Policy Pass-Through in Sweden
This paper examines monetary policy pass-through onto banks’ interest rates in Sweden, exploring variations across different bank categories and periods of policy rate adjustments. Using a Vector Error Correction Model (VECM) with daily data from 1985 to 2024 and a newly developed interest rate sensitivity analysis, this study analyzes short- and long-term pass-through effects on both lending and
