The rise in the key ECB interest rates led to an immediate increase in the cost of balance sheet liabilities, mainly bank deposits and the negative TARGET balance. There was no corresponding increase in the yield on monetary policy assets, which are less sensitive to growth in interest rates, as they consist mainly of fixed-rate securities with medium to long-term maturities.
2/6  BIS - Central bankers' speeches  This asymmetry negatively affects the net interest income, which after the decrease in 2022 is set to decline further in the coming years.