pass-through occurred before the actual increase in policy rates) and negative or zero initial rates at the start of
the post-pandemic cycle could have added to the weaker pass-through, but our results point to small effects.
Future research could revisit our results once more data becomes available to account for any potential lags in
pass-through in the post-pandemic tightening cycle and further test the robustness of our results, including by
using alternative measures of concentration. In addition, future research could expand our work by comparing
the pass-through between hiking and loosening cycles, and analyzing the pass-through to NFC loan rates in a
more granular way. A natural complement to our analysis is a more comprehensive analysis of the effects of
monetary policy changes in conjunction with deposit and loan volumes, similarly to Lane (2023a, b), which
together with our analysis of pass-through would provide a more comprehensive perspective on monetary
policy transmission. For instance, Lane (2023c) shows that loan volumes in the euro area have weakened
sharply starting from the end of 2022. In addition, some countries in our sample are partially euroized, implying
that the pass-through to deposits and loans in domestic currency matters less. Future research could study the
determinants and effects of pass-through in these countries which could be interdependent with the interest
rate on euro denominated deposits and loans; see Chen et al. (2024) for a discussion on monetary policy
transmission in partially euroized European countries.
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