MEMORY RESPONSE OF CAPITAL MARKET PERFORMANCE TO INTEREST RATES ANNOUNCEMENT: ATHEORETICAL EVIDENCE IN NIGERIA

Despite the management of interest rates by monetary policy authorities over these years, performance capital market has not been impressive in Nigeria. The study analyzed memory response to announcement used rate, and deposit rate as against capitalization. sourced data from Central Bank Nigeria Statistical Bulletin between 1985 2020. adopted Augmented Dickey-Fuller, Autoregressive Distributed Lag for analysis. findings showed that, money was stationery at levels, while capitalization were first differences, no long run co-integrating equation. theoretical evidence Error correction test revealed did constitute significant variables on Nigerian performance. Regular monitory downward review committee recommended.