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This study was embarked upon with a view to determining the impact of interest rate on other selected macroeconomic variables in Nigeria. Data were sourced from CBN Abuja and NBS. Data were analyzed using the ordinary least square regression (OLS). Results indicate that: Interest rate is inversely related investment and also negatively related with GDP. On the basis of the above stated findings some policy recommendations were made.(1)Government should establish policies that encourage increase in savings deposit rate, reduction in lending rates and also, efficient and reliable financial institutions encourage people to save. (2) The require reserve ratio should be to strengthen the lending rate of commercial banks. (3) We recommend that the government and financial authorities should implement policies that favour income growth such as job creation and increase in salaries and wage increase as these will affect investment significantly.
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