Financial modelling and prediction of interest rate using fuzzy logic and genetic algorithms

The paper discusses the development of an intelligent fuzzy logic system using genetic algorithms for the prediction of fluctuations in interest rates. The proposed system uses a set of fuzzy rules to determine quarterly interest rates. The set of rules is unknown so a knowledge base must be created from the available data. A hierarchical fuzzy logic system consisting of three fuzzy knowledge bases is developed. The application of the proposed method to modelling and prediction of interest rates in Australia is considered