Analysis of The Use of Central Bank Policy Rate Adjustments as A Tool for Influencing the Cost of Credit Resources in The Banking Systems of Foreign Countries

This article conducts a systematic analytical examination of central bank policy rate adjustments as a primary monetary transmission instrument influencing the cost of credit resources across developed, emerging, and transitional banking systems. The study investigates the theoretical foundations of monetary policy transmission, reviews the empirical literature on interest rate pass-through mechanisms, and applies a comparative analysis framework across eight national economies - the United States, the Eurozone, the United Kingdom, Japan, China, South Korea, Brazil, and Uzbekistan - spanning the policy cycle from 2021 to 2024. Drawing on data from the Bank for International Settlements (BIS), the International Monetary Fund (IMF), the World Bank, and national central bank statistical publications, the research documents substantial cross-country heterogeneity in the speed, magnitude, and completeness of interest rate transmission to retail lending rates. The analysis identifies structural banking sector characteristics, financial market depth, inflation regimes, exchange rate flexibility, and institutional credibility as the principal determinants of transmission efficiency. Special attention is devoted to Uzbekistan’s monetary policy experience under the Central Bank of Uzbekistan (CBU), contextualizing domestic policy choices within the broader international evidence base. The article concludes with a set of policy recommendations directed at strengthening monetary transmission mechanisms in banking systems characterized by structural rigidities, shallow financial markets, and elevated dollarization.

Central bank policy rate, monetary policy transmission, interest rate pass-through

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