What is the effect of the policy rate on the stock markets


Question 1: Zambia's Policy rate was changed from 8.5% points tom 9.0% in December 2021 by the Bank of Zambia. Discuss the four reasons that could support the change in the policy rates upwards.

Question 2: What is the effect of the policy rate on the stock markets? Answer should have inside citations and references at the end.

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Finance Basics: What is the effect of the policy rate on the stock markets
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