Abstract

In this chapter, an intelligent hierarchical neural network system for prediction and modelling of interest rates in Australia is developed. A hierarchical neural network system is developed to model and predict 3 months’ (quarterly) interest-rate fluctuations. The system is further trained to model and predict interest rates for 6-month and 1-year periods. The proposed system is developed with first four and then five hierarchical neural networks to model and predict interest rates. Conclusions on the accuracy of prediction using hierarchical neural networks are also reported.

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