Template-Type: ReDIF-Paper 1.0 Author-Name: Olivier De Jonghe Author-Workplace-Name: European Central Bank; National Bank of Belgium Author-Name: Konstantins Benkovskis Author-Workplace-Name: Latvijas Banka Author-Name: Karolis Bielskis Author-Workplace-Name: Lietuvos Bankas Author-Name: Diana Bonfim Author-Workplace-Name: Banco de Portugal; Católica Lisbon Author-Name: Margherita Bottero Author-Workplace-Name: Banca d’Italia Author-Name: Tamás Briglevics Author-Workplace-Name: Central Bank of Hungary Author-Name: Martin Cesnak Author-Workplace-Name: National Bank of Slovakia Author-Name: Mantas Dirma Author-Workplace-Name: Lietuvos Bankas Author-Name: Marina Emiris Author-Workplace-Name: National Bank of Belgium Author-Name: Pálma Filep-Mosberger Author-Workplace-Name: Central Bank of Hungary Author-Name: Valentin Jouvanceau Author-Workplace-Name: Lietuvos Bankas Author-Name: Nicholas Kaiser Author-Workplace-Name: Central Bank of Ireland Author-Name: Dmitry Khametshin Author-Workplace-Name: Banco de Espana Author-Name: Tibor Lalinsky Author-Workplace-Name: National Bank of Slovakia Author-Name: Viola M. Grolmusz Author-Workplace-Name: Central Bank of Hungary Author-Name: Laura Moretti Author-Workplace-Name: Central Bank of Ireland Author-Name: Arturs Janis Nikitins Author-Workplace-Name: Latvijas Banka Author-Name: Angelo Nunnari Author-Workplace-Name: Banca d’Italia Author-Name: Maria Rodriguez-Moreno Author-Workplace-Name: Banco de Espana Author-Name: Elitsa Stefanova Author-Workplace-Name: European Central Bank Author-Name: Lajos Tamás Szabó Author-X-Name-First: Lajos Tamás Author-X-Name-Last: Szabó Author-Workplace-Name: Central Bank of Hungary Author-Name: Karlis Vilerts Author-Workplace-Name: Latvijas Banka Author-Name: Sujiao Emma Zhao Author-Workplace-Name: Banco de Portugal Title: Household Borrowing and Monetary Policy Transmission: Post-Pandemic Insights from Nine European Credit Registers Abstract: We study heterogeneity in households’ credit across nine European countries (Belgium, Spain, Hungary, Ireland, Italy, Latvia, Lithuania, Portugal, and Slovakia) during 2022-2024 using granular credit register data. We first document substantial between- and within-country variation in mortgage and consumer lending by borrower age, loan maturity, and interest rate fixation. We then quantify the pass-through of the ECB’s recent tightening cycle to household borrowing costs and assess its heterogeneous impact across households. Pass-through is nearly complete for mortgages (around 0.9) but considerably weaker for consumer credit (around 0.4). While mortgage pass-through is relatively homogeneous across countries, consumer credit shows pronounced cross-country differences that cannot be explained by borrower or loan characteristics. Younger households face stronger mortgage pass-through but weaker consumer credit pass-through relative to older borrowers, and longer maturities are associated with stronger pass-through in both credit markets. Creation-Date: 2026-06 Length: 40 pages File-URL: https://www.mnb.hu/letoltes/mnb-wp-2026-1-final-1.pdf File-Format: application/pdf Number: 2026/1 Classification-JEL: E52, G21, D14 Keywords: monetary policy transmission; household borrowing; credit registers; interest rate pass-through; cross-country heterogeneity Handle: RePEc:mnb:wpaper:2026/1