Low interest rates - do they revise household saving motives in the Euro area?

• Authors: Kochaniak Katarzyna
• Languages of publication: EN

Abstracts

EN

This paper presents the impact of decreasing MFI interest rates on household deposits and saving goals in 12 Monetary Union member countries in the years 2009-2015. It analyses tendencies in household deposits (overnight, with agreed maturity and redeemable at notice), and attempts to link them with certain household saving motives (target, retirement and precautionary). The paper identifies those deposit categories which appeared as sensitive to declining interest rates and indicates the Eurozone countries whose populations are expected to revise their savings plans. Precise implications are drawn for target saving motives of households in Austria, Cyprus and Malta. However, in the case of two other motives, the analysis does not conclude on the impact of decreasing MFI interest rates.

Keywords

EN

household deposits; MFI interest rates; household saving motives

• Publisher: Wyższa Szkoła Informatyki i Zarządzania z siedzibą w Rzeszowie
• Journal: Finansowy Kwartalnik Internetowy e-Finanse
• Year: 2016
• Volume: 12
• Issue: 1
• Pages: 43-56

Dates

published

2016-07-20

Contributors

author

Kochaniak Katarzyna

• Cracow University of Economics