Central banks wield considerable influence over the financial markets, including equity indexes. Their policies, including interest rate adjustments, quantitative easing, and regulatory changes, can have profound effects on the performance of equity indexes both domestically and internationally. By examining the interplay between central bank policies and equity index performance, investors can make more informed decisions in their investment strategies.
Interest Rate Decisions and Equity Index Performance
When a central bank, like the Federal Reserve, modifies interest rates, it sends ripples through the stock market. Typically, lower interest rates make borrowing cheaper,...
Central banks wield considerable influence over the financial markets, including equity indexes. Their policies, including interest rate adjustments, quantitative easing, and regulatory changes, can...