... used quarterly interest rates. To get a proxy for the annual interest rate, we therefore need to multiply the quarterly interest rate by four. Hence, if we had used an annual interest rate, ... Bjørnland and Håvard Hungnes The importance of interest rates for forecasting the exchange rate Abstract: This study compares the forecasting performance of a structural exchange rate model ... exchange rate behaviour by Norges Bank (the central bank of Norway), see e.g. Akram 2000a, and Norges Bank (2000)9. Note that in this forecasting competition, all models are compared using levels...