Inertia and Pass-Through in Retail Deposit Markets

27 Pages Posted: 24 Sep 2019

See all articles by Florian Deuflhard

Florian Deuflhard

European Union - European Commission

Date Written: August 1, 2019


This paper investigates heterogeneous pass-through of monetary policy rates to variable-rate savings accounts using monthly account-level panel data from a Dutch comparison website. I find incomplete and delayed pass-through that varies widely across banks but even account products offered by the same bank. Bank-specific factors explain less than half of the variation in pass-through rates. Within banks, internet-managed and newer accounts capturing market segments with more flexible consumers exhibit substantially higher pass-through than regular and older accounts. This suggests an important role of inertia for incomplete monetary transmission.

Keywords: inertia, deposit markets, pass-through, monetary policy

JEL Classification: G14, G21, E43

Suggested Citation

Deuflhard, Florian, Inertia and Pass-Through in Retail Deposit Markets (August 1, 2019). Available at SSRN: or

Florian Deuflhard (Contact Author)

European Union - European Commission ( email )

Rue de la Loi 200
Brussels, B-1049

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