Tag Archives: Real Interest Rate

ESTIMATING REAL INTEREST RATES USING THE YIELD CURVE: EVIDENCE FROM GHANA (Published)

This empirical study is to find out whether the yield curve for government debt securities with maturities of one year or less contains significant information about future changes in real interest rates. At the various spreads isolated, there is overwhelming evidence that the yield curve wields significant explanatory power in future real interest rate-changes. These results from Ghana show that the yield curve could serve as a powerful forecasting tool in monetary policymaking as well as asset pricing by central bankers and portfolio managers

Keywords: Ghana, Government, Real Interest Rate, Yield Curve

Real Interest Rate and Savings Mobilization in Nigeria (Published)

This study empirically assessed the impact of real interest rate on savings mobilization in Nigeria. The Vector- Auto Regression (VAR) was employed, using the time series data from 1980 to 2008. The study revealed that real interest rate has negatively impacted on the level of savings mobilization in Nigeria. The need for government in Nigeria to bridge the existing gap between the lending and savings rates and increase per capita income level of the populace, to stimulate savings for investment and economic growth were revealed by the study. Therefore, efforts should be geared towards reducing domestic inflation rate to arrest its negative impact on real rates in Nigeria.

Keywords: Inflation Rate, Lending Rate, Real Interest Rate, Savings Mobilization And Nigeria, Vector Auto Regression