Interest rate, liquidity and stock market performance in Ghana


  • Micheal Kofi Boachie Department of Economics, Annamalai University, India
  • Isaac Osei Mensah ASN Investment Limited, Kumasi, Ghana
  • Albert Opoku Frimpong Department of Economics, Kwame Nkrumah University of Science and Technology, Kumasi
  • Martin Ruzima Department of Economics, Annamalai University





Liquidity, Stock Market Index, Exchange Rate, Inflation, Interest Rate, Ghana


In this study, we examined the effect of interest rate and liquidity growth on stock market performance in Ghana using monthly data from the Ghana Stock Exchange and Bank of Ghana for the period 2010:12 to 2013:11. After employing robust linear regression (M-Estimation), there is a compelling evidence that performance of the Ghanaian stock market is highly influenced by liquidity growth, exchange rate and inflation; and that interest rate effect is insignificant though positive on the stock market index for the period under study.


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