Monetary Policies and Macroeconomic Variables

The prevalent issue of monetary policy and macroeconomic variables necessitated this study. Thus, this research study extensively investigated monetary policy and macroeconomic variables in Nigeria 1990- 2018. The study adopted secondary time series data obtained, publications of the Central Bank of Nigeria and federal office of statistics. Ordinary Least square regression was used to analyze the data. The findings revealed that monetary policy has a positive relationship with index of industrial production while it has a negative relationship with inflation rate, consumer price index and lending rates in the Nigerian economy. The study recommends that the Central Bank of Nigeria should decrease monetary policy rate because it tends to increase the demand and circulation of money in the economy, thereby increasing investments and demands for goods and services. Monetary authorities should often increase the requirement to reduce the amount of loanable funds available for loans as this would reduce the unit of money in circulation.