If households for example aim at achieving a specific replacement ratio at the time of retirement, low real interest rates imply that they have to save more. But as we are in unchartered territory with negative nominal rates, more research in this area is vital.
THE TRANSMISSION VIA THE BANKING SECTOR Many households and firms most directly feel the impact of low interest rates via their bank. Lending as well as deposit rates have declined alongside the reduction in policy rates as illustrated by the chart. For lending rates, pass-through from policy rates has been more sluggish than what we are used to.