This paper uses a vector error correction model to assess the pass-through of the interbank interest rate to retail interest rates in domestic currency between 1995 and 2004. In the short term, retail interest rates respond asymmetrically to changes in the interbank interest rate. In the long run, on the other hand, the pass-through is incomplete, even though the magnitude has increased since the announcement of the corridor of interest rates (February 2001) and the adoption of the inflation targeting scheme (January 2002). The corridor has also increased the speed of adjustment. Thus, we can infer that monetary policy has had a favorable impact on the pass through.