Interest rate volatility in Nigeria is significantly associated with stock market performance. Rising rates often lead to capital outflows and lower equity prices, particularly in interest-sensitive sectors. Vector autoregression (VAR) models can help quantify this dynamic and inform monetary policy analysis.
There is a negative relationship between interest rate volatility and stock market returns
In Nigeria the relationship between interest rate volatility and stock market returns is usually negative.
In Nigeria, interest rate volatility affects stock market returns by influencing investor confidence and capital flows; higher volatility can lead to market instability and risk aversion, while predictable interest rates generally support more stable and positive stock performance.
In Nigeria, interest rate volatility tends to influence stock market returns by affecting investor confidence and capital flows—rising rates can reduce equity investments, while falling or stable rates often stimulate market activity and risk-taking.
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Interest rate volatility in Nigeria is significantly associated with stock market performance. Rising rates often lead to capital outflows and lower equity prices, particularly in interest-sensitive sectors
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