Real stock prices drop as interest rates rise in ASEAN-5 countries.
The study looked at how changes in interest rates affect stock prices in ASEAN-5 countries. They found that when interest rates go up, stock prices tend to go down. On the other hand, when stock prices increase, interest rates also rise, but with a delay of a few months. This relationship between monetary policy and asset prices was consistent across the countries studied. The delay in interest rate response to stock price changes was observed in Indonesia, the Philippines, and Thailand.