Interest rate, fried the market? / The fall of the stock market index is not over

According to Tejarat News, shareholders are witnesses today Stock market index drop were, many believe that the holding of stock market meetings and the record-breaking interbank interest rate is the reason for the continuation of the downward trend of the Tehran Stock Exchange.

The total index of the Tehran Stock Exchange ended its work today with a decrease of more than 11,000 points. The decrease of 11,611 units of the index caused the total index to register a figure of 1,468,000 units on Sunday, July 26, 1401. Equal weight index also faced a drop of 3,200 units and stabilized at 402,000 units.

How far will the stock market index fall?

According to many experts, the events that are happening in the Tehran Stock Exchange these days are due to the implementation of incorrect policies applied by the government in the field of economy. Policies that are contrary to Ebrahim Raisi’s election promises and the people of the bazaar are upset with Khalaf Vomani of the head of state.

Among these promises, we can mention breaking the 20% ceiling for the interbank interest rate. Mandatory pricing, non-interference of the government in the internal affairs of the capital market, etc. are also among other things that are among the unfulfilled promises of the government.

Of course, some analysts also believe that holding meetings and not meeting the expectations of shareholders is another reason for this. This is while the market situation always improved relatively during the assembly season and the index stabilized in the worst case.

Interest rate and downward trend of the index

Many people of the stock market believe that the central bank has gradually increased the interbank interest rate since the beginning of this year. This is while Seyyed Ehsan Khandozi had promised not to raise the interest rate above 20 percent since the fall of 1400. This promise, which was put forward under the title of the stock market support package, has now been violated.

Many believe that the exact interest rate increase is the cause of the stock market crash. On the other hand, many economists emphasize the necessity of using this tool to control inflation. Now it seems that the balance has tipped in favor of economists and the government and the central bank are convinced to increase the interest rate.