Impact of Monetary Policy on Performance of Dhaka Stock Exchange
Author (s)
Mohotarema Rashid & Ummay Mahima Ima
Abstract
This paper investigates the effect of monetary variables on the performance of stock market of Bangladesh using yearly data over the period of year 2008 to 2019. The objective of the study is to consider the effectiveness and consequences of different monetary variables on stock market of Bangladesh. As a dependent variable DSEX index has been used as a proxy variable for stock market performance and three independent variables repo rate, inflation rate, money market rate has been used as proxy of monetary variables. An ordinary least square method shows that 1% increase in money market rate, repo rate, and inflation rate the index value is decreased by 3.30%,1.20% and increased by 1.90% respectively. So this is suggested that investor should consider the above variables to make strategic decisions about portfolio and investment management.
Keywords: Monetary variables, DSEX, Stock market, Inflation, Repo rate.
| Title: | Impact of Monetary Policy on Performance of Dhaka Stock Exchange |
|---|---|
| Author: | Mohotarema Rashid & Ummay Mahima Ima |
| Journal Name: | International Journal of Science and Business |
| Website: | ijsab.com |
| ISSN: | ISSN 2520-4750 (Online), ISSN 2521-3040 (Print) |
| DOI: | https://doi.org/10.5281/zenodo.4059374 |
| Media: | Online |
| Volume: | 4 |
| Issue: | 10 |
| Acceptance Date: | 24/09/2020 |
| Date of Publication: | 30/09/2020 |
| PDF URL: | https://ijsab.com/wp-content/uploads/605.pdf |
| Free download: | Available |
| Page: | 121-127 |
| First Page: | 121 |
| Last Page: | 127 |
| Paper Type: | Research Paper |
| Current Status: | Published |
Cite This Article:
Mohotarema Rashid & Ummay Mahima Ima (2020). Impact of monetary policy on performance of Dhaka Stock Exchange. International Journal of Science and Business, 4(10), 121-127. doi: https://doi.org/10.5281/zenodo.4059374
Retrieved from https://ijsab.com/wp-content/uploads/605.pdf
About Author (s)
Mohotarema Rashid (corresponding author), Bangladesh Army University of Science and Technology, Bangladesh.
Ummay Mahima Ima, Bangladesh University of Professionals, Dhaka- 1216, Bangladesh.
DOI: https://doi.org/10.5281/zenodo.4059374