The study explored the impact of monetary policy rate on interest rate pass-through in Ghana using
the Autoregressive Distributed Lagged Model (ARDL) for the period 2003 to 2018. To achieve
these objectives, time series data was obtained from Bank of Ghana’s database and analysed using
the ARDL estimation techniques. A significant long run cointegrating relationship was found
between MPR and wholesale market rate (WMR) as well as deposit rate. Also, IRPT between
MPR and WMRs, as well as deposit rate in the long run was found to be incomplete, and over
pass-through to lending rate. A steady long run relationship was also found between WMRs and
retail rates. In view of the objective to determine the influence of WMRs on retail rates, results
further indicated an incomplete pass-through for both retail market rates (lending rates and deposit
rates). Despite the incompleteness, lending rates and interbank rates respond relatively strongly
to MPR changes in the short run. Lending rates however respond relatively strongly to WMR
changes than deposit rates. The study advised government to free the credit and deposit markets
in order to incentivize borrowers and private investors to save and/or lend money that could
facilitate the free flow of money among the formal and informal sectors in the country. The study
further recommends further interventions in the monetary policy transmission process to help
augment the existing policy structures to strengthen the long-term relationship between the various
interest rate channels.
Edu, F (2021). The Impart of Money Polices on Interest Rate Pass- Through Among Commercial Banks in Ghana. Afribary.com: Retrieved April 15, 2021, from https://afribary.com/works/the-impart-of-money-polices-on-interest-rate-pass-through-among-commercial-banks-in-ghana
Frontiers, Edu. "The Impart of Money Polices on Interest Rate Pass- Through Among Commercial Banks in Ghana" Afribary.com. Afribary.com, 06 Apr. 2021, https://afribary.com/works/the-impart-of-money-polices-on-interest-rate-pass-through-among-commercial-banks-in-ghana . Accessed 15 Apr. 2021.
Frontiers, Edu. "The Impart of Money Polices on Interest Rate Pass- Through Among Commercial Banks in Ghana". Afribary.com, Afribary.com, 06 Apr. 2021. Web. 15 Apr. 2021. < https://afribary.com/works/the-impart-of-money-polices-on-interest-rate-pass-through-among-commercial-banks-in-ghana >.
Frontiers, Edu. "The Impart of Money Polices on Interest Rate Pass- Through Among Commercial Banks in Ghana" Afribary.com (2021). Accessed April 15, 2021. https://afribary.com/works/the-impart-of-money-polices-on-interest-rate-pass-through-among-commercial-banks-in-ghana