Impact of Interest Rates on Savings and Investment Behaviour in Nigeria
Economics — 2025, Undergraduate
This study examined the impact of interest rates on savings and investment behaviour in Nigeria. A descriptive survey was conducted with savers, investors, and financial service users using a structured questionnaire. Data were analysed using descriptive statistics and regression analysis. The findings revealed that higher deposit rates encouraged formal savings while high lending rates discouraged borrowing and investment, particularly among small firms and households. The study observed that inflation expectations moderated the response of savers to interest rates. It recommends policies that balance competitive deposit rates with affordable credit for productive investment.
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