Interest Rates and Inflation Impact Stock Prices, Rupiah Exchange Rate Dominant
The study looked at how interest rates, inflation, and other factors affect stock prices. They analyzed data from 2013 to 2020 and found that all three factors together have a significant impact on stock prices. Specifically, high local interest rates and inflation tend to lower stock prices, while changes in the US interest rate don't have much effect. The study also suggests that the exchange rate of the local currency plays a big role in determining stock prices.