Dr. Sanjib Kumar Pakira
The present paper explores the causal relationship between interest rates structure to be specific causal relationship between Call/ Notice Money Rates, Savings Rates, Term Deposits Rates above five years and Lending Rates in India for the period from 2001-02 to 2015-16(up to July 14, 2015) using yearly data with the application of unit root test, Johansen cointegration test and Granger causality test. Though causal relationship and association between various macroeconomic variables have become most mesmerizing area for study but with the view of growth in economy, the importance of investigating the causal relationship and association between various interest rates structure in India cannot be ignored. The present study will try to analyze the causal relationship between interest rates structure in India. Johansen cointegration test result indicates that there exists a long-term relationship among the selected variables. Granger causality test result shows that there must be either bidirectional or no causality among the variables.