This empirical study is to find out whether the yield curve for government debt securities with maturities of one year or less contains significant information about future changes in real interest rates. At the various spreads isolated, there is overwhelming evidence that the yield curve wields significant explanatory power in future real interest rate-changes. These results from Ghana show that the yield curve could serve as a powerful forecasting tool in monetary policymaking as well as asset pricing by central bankers and portfolio managers
Keywords: Ghana, Government, Real Interest Rate, Yield Curve
