In addition, several empirical studies exploiting bank-level data confirmed the causal link between negative policy rates and loan growth. [7] Taken together, these findings suggest that the lowering of policy rates into negative territory fostered monetary policy transmission in the euro area, as evidenced by the strong pass-through from policy rates to market rates and higher loan growth.
2 We believe this is a fair view of the disinflation so far, entirely uninfluenced by the fact that two of the three authors are from the RBI. 2  “What is Responsible for India’s Sharp Disinflation?”, Sajjid Chinoy, Pankaj Kumar, and Prachi Mishra, working paper, August 2015.