Informational content of the money market interest rates of the Bank of Central African States
- Author OKELE Chanael Ulrich
- Co-Author Rufin-Willy MANTSIE
- DOI https://ww
- Country : The Republic of the Congo
- Subject : Financial Economics
Keywords : interest rates, money market, Institution, information, BEAC
Abstract
This thesis aims to analyze the informational content of the money market interest rates of the Bank of Central African States. To achieve this objective, we adopted the econometric approach of time series based on the use of an error correction model, by using a tim interval from January 2017 to December 2020, representing forty-eight (48) observations. It appears from our study that the reference interest rate and the money market of the Bank of Central African States do not convey short-term information. Nevertheless, in the long term, they have informational power. These results are similar to those obtained by Restoy and Haldane (1997), as well as Perez and Secilia (2002) in their respective studies. The informational opacity observed in the short-term is caused by the policy of administered interest rates implemented by the monetary authorities. To endow interest rates and the market with informational power, it is therefore necessary, for the monetary authorities, to liberalize interest rate from any administrative constraint or bureaucratic mechanism.
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