The impact of interest rates on the stock market in Finland

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School of Business | Bachelor's thesis
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Date

2023

Department

Rahoituksen laitos

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Mcode

Degree programme

Rahoitus

Language

en

Pages

18+2

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Abstract

This thesis investigates the impact of the interest rates on the main stock index in Finland OMX Helsinki 25 and more specifically, whether short-term and long-term interest rates affect the stock market differently. The data is collected from 2003-2022 and monthly values are used. The results of the OLS estimation suggest that the interest rates don’t have scientifically significant impact on the OMXH25 index returns. Granger-causality test’s results suggest that there appear to be a reverse causality relationship between interest rates and OMXH25 returns, thus the returns do have an impact on the interest rates.

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Thesis advisor

Luotonen, Niilo

Keywords

interest rates, OLS estimation, granger causality, OMX Helsinki 25

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Permanent link to this item

https://urn.fi/URN:NBN:fi:aalto-202401281874

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[kand] Kauppakorkeakoulu / BIZ