Interest rates on money market show positive correlation, impacting global banking policies.
Interest rates on the money market are important for banking policies. This study looked at how central bank interest rates and interbank money market rates are connected. They found that these rates move together, showing a positive correlation. Central banks adjust their rates to meet their goals, while interbank rates move in sync. The Central Bank of Bosnia and Herzegovina adjusted rates on euro instruments. The European Central Bank's rates and Bosnia's Central Bank rates are linked due to Bosnia's currency board system.