TY - JOUR AU - Rodolfo Cermeño AU - Oscar Dancourt AU - Gustavo Ganiko AU - Waldo Mendoza PY - 2016/03/30 Y2 - 2024/03/29 TI - Active Interest Rates and Monetary Policy: An Analysis with Individual Banks Data JF - Economia JA - ECONOMIA VL - 39 IS - 78 SE - Articles DO - 10.18800/economia.201602.004 UR - https://revistas.pucp.edu.pe/index.php/economia/article/view/16515 AB - This paper investigates empirically the interest rate channel of the transmission mechanism of the monetary policy in Peru. Using monthly data for the six largest banks for the period June 2003 – June 2010 we study the two main policy instruments used under the inflation-target regime: the rate of monetary policy and the required bank reserves rate. We fit a dynamic panel data model obtaining two fundamental results. First, increases in the rate of monetary policy affectpositively and significantly the interest rates on commercial loans charged by the six largest banks of the country. Second, no evidence is found that the required bank reserves rate on deposits in Peruvian currency ER -