Interest Rate Liberalisation and Savings Mobilisation in Nigeria
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This study investigates the empirical effect of interest rate deregulation policy on savings mobilization in Nigeria using dataset that spanned 1981 through 2017, which was analyzed with Autoregressive Distributed Lag Models (ARDL). The Augmented Dickey Fuller unit root test was applied to filter and smoothen the dataset, while The ARDL Bounds test was used to test for cointegration among the variables . The ARDL results of this empirical study refutes the existence of Shaw's intermediation effect as regard the transmission mechanism between interest rate deregulation and savings mobilization, but it upheld the classical argument of savings being a function of income level. This imply that interest rate deregulation policy, has positive relationship with saving mobilisation in Nigeria but this is not statistically significant. It further implies that it is not an effective and efficient policy has it failed to be meet its purpose. The study therefore recommends that adoption of interest rate deregulation policy should be consistent and continuous, and monetary policy rules should be the order (guiding rule) and not discretionary policy