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Registered by Australia Post Publication No. BNP 0282 ISSN 03125807 VOLUME 14 FEBRUARY 1988 NUMBER 1 JOURNAL OF THE AUSTRALIAN NAVAL INSTITUTEAUSTRALIAN NAVAL INSTITUTE INC 1 The Australian Naval
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How to fill out asymmetric interest rate pass-through

01
Identify the key interest rate that is being used as the reference rate, such as the prime rate or LIBOR.
02
Determine the direction and magnitude of the interest rate change, whether it has increased or decreased.
03
Calculate the pass-through rate, which is the percentage change in the interest rate that is passed on to consumers or borrowers.
04
Adjust the interest rates for loans, mortgages, or other financial products based on the asymmetric interest rate pass-through model.

Who needs asymmetric interest rate pass-through?

01
Banks and financial institutions that offer loans and mortgages
02
Economists and researchers studying the impact of interest rate changes on the economy
03
Policy makers and central banks looking to understand and manage interest rate transmission mechanisms

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Asymmetric interest rate pass-through refers to the phenomenon where changes in the interest rates set by central banks are not fully passed on to borrowers or depositors by financial institutions.
Banks and financial institutions are required to file asymmetric interest rate pass-through reports.
Asymmetric interest rate pass-through reports can be filled out electronically through the designated regulatory platform provided by the relevant authorities.
The purpose of asymmetric interest rate pass-through is to monitor and analyze the effectiveness of monetary policy transmission mechanisms in the financial system.
The reporting typically includes details on changes in central bank interest rates, corresponding changes in lending and deposit rates, and the extent of pass-through to customers.
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