The Effects of Inflation Rate, GDP and Real Growth Rate on Interest Rate——Evidence from Canada

摘要

This paper investigates the effects of inflation rate, GDP, and real growth rate on interest rate in Canada for the period of 2003 to 2014. I employed the monthly data from Statistics Canada. By testing the unit root, cointegration, and Granger causality and using the econometric regression, I find that inflation rate, GDP, and real growth rate have significantly positive effects on interest rate.