The Effect of Interest Rates on the Stock Market
With the Fed hiking up interest rates in the US, it is only a matter of time before interest rate rises take place in Australia. So what are the consequences of interest rate hikes and the stock market? In general, when interest rates are cut then it causes the market to go up. When the interest rates go up, the stock market goes down. The main reason for this is that companies will have less capacity to borrow more from …