THE INFLUENCE OF INTEREST RATE CHANGES ON STOCK MARKET VALUATIONS

Abstract

This article examines the complex relationship between interest rate changes and stock market valuations. By analyzing how adjustments in central bank rates affect stock prices, it reveals that both increases and decreases in interest rates have significant, albeit different, impacts on the market. The study provides insights into the challenges and opportunities these changes present, offering strategic recommendations for investors and policymakers to better navigate the financial landscape.