The impact of macroeconomic variables towards interbank money market rate in Malaysia / Azrul Hilmi Arif Feizal

• Main Author: Arif Feizal, Azrul Hilmi
• Format: Thesis
• Language: English
• Published: 2022
• Subjects: Macroeconomics
• Online Access: https://ir.uitm.edu.my/id/eprint/101400/1/101400.pdf; https://ir.uitm.edu.my/id/eprint/101400/

In financial market systems, the interbank money market is a channel through which banks can borrow and lend, purchase and sell assets to one another for a certain period of time. Interbank money market instruments are short-term financial products with maturities ranging from overnight to 12 months. The interbank money market is essential in the central bank's implementation of monetary policy to financial institutions. It serves as the starting point for the monetary policy transmission mechanism. When the central bank issues new monetary policy, the money market is the first to be influenced by the policy changes while other markets do so as well later. The primary goal of this study is to examine the independent variables of interest rate, money supply, inflation, economic growth, and stock market performance to determine the macroeconomic determinants of interbank money market rates in Malaysia. The research will be done on a monthly basis for five (5) years, beginning in August 2017 and ending in August 2021.