Financial modelling and prediction of interest rate using fuzzy logic and genetic algorithms
Mark Kingham, Masoud Mohammadian · 2002
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.