The Impact of Bank Rate on Stock Prıces
Rufana Abdurahmanova 
Xülasə. The relevance of the study stems from the importance of the impact of bank discount rates on stock prices in modern financial markets. Changing interest rates by central banks not only affects the level of economic growth and inflation, but also changes the value of stocks by affecting investors' income expectations. Increasing discount rates can cause investors to turn to alternative sources of income, which can lower stock prices, while decreasing them can increase investment interest and increase market prices. These mechanisms are analyzed more precisely through the IS–LM model, which explains the behavior of the stock market, especially in the short term, and this model can indirectly show the impact of changes in interest rates on the capital market. Empirical studies show that there is a mainly inverse relationship between interest rates and stock prices in different countries, but the intensity of this relationship varies depending on the level of economic development of the countries, the depth of financial markets, and the institutional environment. However, the research conducted in Azerbaijan is relatively limited and is mostly evaluated within the framework of general monetary policy. Therefore, the topic needs to be investigated on a systematic and statistical basis. The object of the study is the monetary policy and capital market system in the Azerbaijani economy, and the subject is the interaction of bank interest rates with the mechanisms of impact on the stock market and investor behavior. The study analyzed the impact of interest rates on stock prices using both theoretical and empirical methods and determined their short- and long-term effects.
Keywords: bank, stock, economic, debt, inflation, economic, finance, risk, investor