Forecasting Interest Rates: Setting The Scene

Interest rates play a vital role in financial markets. Forecasting interest rates accurately is one of the hardest tasks in predictive financial analysis. It is difficult to estimate interest rates because they change continuously and are dependent on a large number of factors including regimes of countries to banking lending trends. Coincidentally interest rates are also one of the most important financial market data that impact our standard of living.

I am going to attempt and build all of the required building blocks to forecast and evolve interest rates.

Join me in my journey. This is going to be a good learning experience.

There are a numerous existing mathematical techniques which are currently employed by financial institutions to forecast interest rates. Additionally, recent machine learning advancements have enabled us to predict behaviour of complex data in finance.

Context learning artificial neural networks have helped predict outcomes which were considered very difficult in recent past. This very development has motivated me to combine advanced mathematical techniques with machine learning concepts to investigate and implement a model that accurately forecasts interest rates.

Aim is to investigate and explain all of the financial and machine learning concepts…