How quickly (and how much) a bank changes the interest rate paid on deposits in response to Fed‑funds moves. A 0.6 beta means a 1 % Fed cut lowers deposit costs by only 0.6 %.
« Back to Glossary IndexDeposit Beta
« Back to Glossary Index
How quickly (and how much) a bank changes the interest rate paid on deposits in response to Fed‑funds moves. A 0.6 beta means a 1 % Fed cut lowers deposit costs by only 0.6 %.
« Back to Glossary Index