Determinants of Interest Rate : Empirical Evidence from Pakistan

Journal of Economics and Sustainable Development, Vol.5, No.13, pp. 25-30

7 Pages Posted: 6 Feb 2017

See all articles by Khushbakht Kanwal

Khushbakht Kanwal

IQRA University - IQRA University (Gulshan Campus)

Muneer Ahmed

Benazir Bhutto Shaheed University, Lyari, Karachi

Dr. Anwer Irshad Burney

University of Karachi

Muhammad Mubeen

Bilkent University, Department of Management, Students; IQRA University - IQRA University (Gulshan Campus)

Date Written: February 25, 2014

Abstract

The main focus of this research study will be to determine the main factors that influence interest rates and different economic variables that cause interest rate to fluctuate in an economy in short run. Different economic indicators have different impact on interest rates at a different pace. How these indicators respond to different economic situations and to what extent it brings changes in the rate of interest. The two selected and vastly adopted and acceptable indicator for calculating interest rate are CPI and exchange rates. These two variables are used in regression equation to indicate the effect and their influence on our dependent variable i.e. Interest rate, with the help of software SPSS. 6- Years secondary data was taken from SBP and SECP on monthly basis from 2005 to 2010.The positive and a very strong relationship has been found among the variables.

Keywords: KIBOR, CPI, Interest rate, and Inflation

Suggested Citation

Kanwal, Khushbakht and Ahmed, Muneer and Irshad Burney, Dr. Anwer and Mubeen, Muhammad, Determinants of Interest Rate : Empirical Evidence from Pakistan (February 25, 2014). Journal of Economics and Sustainable Development, Vol.5, No.13, pp. 25-30, Available at SSRN: https://ssrn.com/abstract=2910714

Khushbakht Kanwal

IQRA University - IQRA University (Gulshan Campus) ( email )

Abid Town, Block-2, Gulshan-e-Iqbal
Karachi, Sindh 75300
Pakistan

Muneer Ahmed

Benazir Bhutto Shaheed University, Lyari, Karachi

Faqir Mohammad Dura Khan Road,
Near cheel chowk
Karachi, Sindh 75500
Pakistan

Dr. Anwer Irshad Burney

University of Karachi

University Road
Karachi, PA Sindh 75270
Pakistan

Muhammad Mubeen (Contact Author)

Bilkent University, Department of Management, Students ( email )

Ankara
Turkey

IQRA University - IQRA University (Gulshan Campus) ( email )

Abid Town, Block-2, Gulshan-e-Iqbal
Karachi, Sindh 75300
Pakistan

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