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Monetary Policy Transmission Mechanism in Nigeria: Does Interest Spread Complicate Inflationary Targeting ?

Author

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  • Shobande Olatunji Abdul

    (University of Lagos)

Abstract

Prolonged deviation in the interest rate spread in the monetary transmission channel hasbecome the point of academic inquiry in recent years. The possibility that the current interest rate spread and poor liquidity management of the Central bank have combined to frustrate the financing role of majority of deposit money banks in Nigeria. This study analysed the extents to which varied interest rate monetary transmission complicate investment and inflationary targeting framework of the bank. The results shows that interest spread have severe implication on the stability role of the Central bank in Nigeria.

Suggested Citation

  • Shobande Olatunji Abdul, 2018. "Monetary Policy Transmission Mechanism in Nigeria: Does Interest Spread Complicate Inflationary Targeting ?," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 47-52, December.
    • Handle: RePEc:ovi:oviste:v:xviii:y:2018:i:2:p:47-52
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    References listed on IDEAS

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    More about this item

    Keywords

    interest rate; monetary policy; financial stability; inflation;
    All these keywords.

    JEL classification:

    • E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit

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