IDEAS home Printed from https://ideas.repec.org/a/ibf/ijbfre/v8y2014i1p45-55.html
   My bibliography  Save this article

Effects of the Monetary Policy Rate on Interest Rates in Nigeria

Author

Listed:
  • Ikechukwu Kelilume

Abstract

Monetary policy rate has remained a major potent monetary policy tool used by monetary authorities in setting targets and direction of other rates and in driving the movement of other macroeconomic aggregates in both developed and developing countries. In Nigeria however, the Central Bank has kept monetary policy rate stable at 12 percent between October 2011 and September 2012 but stability in monetary policy rate is hardly reflected in the movement short term and long term interest rates. The aim of this study is to use the multivariate Vector Autoregressive Model to analyze the effects of monetary policy rate on other rates in Nigeria. The study makes use of monthly data from M1:2007 to M9: 2012 to evaluate the cause effect relationships between monetary policy rate and short term and long term rates in Nigeria. The choice of the scope of the study lies in examining the response of interest rates to monetary policy shock since the 2007-2008 global economic crises. Result obtained from this study will be used to track the relative effectiveness of monetary policy in an emerging market where money market instrument is not fully developed.

Suggested Citation

  • Ikechukwu Kelilume, 2014. "Effects of the Monetary Policy Rate on Interest Rates in Nigeria," The International Journal of Business and Finance Research, The Institute for Business and Finance Research, vol. 8(1), pages 45-55.
    • Handle: RePEc:ibf:ijbfre:v:8:y:2014:i:1:p:45-55
    as

    Download full text from publisher

    File URL: http://www.theibfr2.com/RePEc/ibf/ijbfre/ijbfr-v8n1-2014/IJBFR-V8N1-2014-4.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Moid U. Ahmad, 2015. "Does CRR and Repo Change Affect Corporate Output?," Jindal Journal of Business Research, , vol. 4(1-2), pages 115-125, June.
    2. Mordi, Charles N. O. & Adebiyi, Michael A. & Omotosho, Babatunde S., 2019. "Modelling interest rates pass-through in Nigeria: An error correction approach with asymmetric adjustments and structural breaks," MPRA Paper 96171, University Library of Munich, Germany.
    3. J. Achua & H. Nagado & I. I. Okafor, 2020. "Is Inflation Always and Everywhere a Monetary Phenomenon? Evidence from Nigeria," Economic and Financial Review, Central Bank of Nigeria, vol. 58(1), March.
    4. Oleksandra Chmel & Valentyna Sinichenko & Daryna Pustovoit & Anton Shmihel, 2019. "Meta-Analysis: Effect of central bank’s key policy rate on banks’ lending interest rates," Modern Economic Studies, Kyiv School of Economics, vol. 2(1), pages 2-11.
    5. Олександра Чмель & Валентина Сініченко & Дарина Пустовойт & Антон Шмігель, 2019. "Мета-Аналіз: Вплив Ключової Ставки Центрального Банку На Ставки Банківського Кредитування," Suchasni ekonomichni doslidzhennja, Kyiv School of Economics, vol. 2(1), pages 2-11.
    6. Elif ERER & Deniz ERER & Mustafa ÇAYIR & Nasuh Oğuzhan ALTAY, 2016. "TCMB, FED ve ECB Para Politikalarının Türkiye Ekonomisi Üzerindeki Etkileri: 1994-2014 Dönemi Analizi," Sosyoekonomi Journal, Sosyoekonomi Society, issue 24(29).
    7. Obi-Nwosu Victoria O & Chukwu, Kenechukwu Origin, 2022. "Monetary Policy and Deposit Money Banks Lending in Nigeria 2000-2020," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(3), pages 310-321, March.
    8. Moid U. AHMAD & Shamima NASRIN, 2017. "An analysis of the effect of monetary policy changes on macroeconomic factors," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(2(611), S), pages 303-318, Summer.

    More about this item

    Keywords

    Monetary Policy; Monetary Policy Rates; Interest Rates;
    All these keywords.

    JEL classification:

    • E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibf:ijbfre:v:8:y:2014:i:1:p:45-55. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mercedes Jalbert (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.