Are Changes In The Interest Rates The Good Indicator Of The Market Movements?

Are Changes In The Interest Rates The Good Indicator Of The Market Movements? by Bargain Value

Today, we will focus on the macroeconomic connection between levels of interest rates and the stock market. Interest rates are very important tool in the hands of central banks. They use them to impact money supply and to stimulate or cool down the national economy. They are tightly connected with the level of inflation and affect markets. It is common knowledge, that low-level of interest rates means cheaper debt for companies. If the companies can get cheaper financing, they take it and invest in development. Investments are good for the economy and strong economy is good for the markets. When the state...