Exchange rate pass-through to euro area import prices in response to a monetary policy shock (percent) Source: ECB calculations based on Casas et al. (2017).
10 / 18  BIS central bankers' speeches  Note: The figure plots the impulse response of import prices to a negative 25 basis point cut in the short-term interest rate leading to 1% depreciation in the exchange rate under local currency (euro) pricing and dominant currency (dollar) pricing obtained in a calibrated small openeconomy model.