Ampudia, Miguel, Van den Heuvel Skander, (2019), “Monetary policy and bank equity values in a time of low and negative interest rates“, Vox CEPR Policy Portal, July
The effects of interest rate surprises on banks are different when nominal interest rates are very low. This column reveals how, in ‘normal’ times, policy rate announcements that are below market expectations tend to boost banks’ stock prices on average. When interest rates are very low, however, there is a reversal of this effect, with negative rate surprises reducing banks’ stock prices. This negative impact is larger for banks whose funding relies more on retail deposits than on other sources of funding.
- Papadia, Fransesco, (2019), “Preparing for uncertainty“, Bruegel.org, July
- Kontogeorgos et all, Georgios, “Working Paper Series: An analysis of the Eurosystem/ECB projections“, No 2291 / June 2019
- ECB, (2019), «Eurosystem staff macroeconomic projections for the euro area», June