MIR Statistics and Managing Interest Rate Risk

Apuntes

• Changes in the Eurosystem’s monetary policy interest rates have little direct impact on the euro area economy • Rather, they influence developments through their pervasive effects on conditions in financial markets and on interest rates paid and charged in borrowing and lending operations throughout the euro area • Given the size of the MFI sector in the euro area, and MFIs’ dominant role in financial intermediation, in particular for the household and NFC sectors, MIR statistics should reflect the Eurosystem’s monetary policy decisions • Therefore, the behaviour of these interest rates is a matter of the closest concern for monetary analysis 39 The importance of MIR statistics MIR statistics provide important input for the analysis of monetary developments and of the interest rate channel of the monetary transmission mechanism The interest rates that MFIs pay to and charge their customers are a key step in the analysis of the extent and speed of the transmission of changes in monetary policy to the real economy The interest rates of various categories of deposits represent the rate of return on some components of the monetary aggregates The interest rates on lending provide info...