Returns and Interest Rate: A Nonlinear Relationship in the Bogota Stock Market

Borradores de Economia
Number: 
169
Published: 
Authors:
Andrés Gónzalez,
Carlos Esteban Posada
Classification JEL: 
C22, C52
Keywords: 
Returns, Interest rate

This work presents some evidence of the nonlinear and inverse relationship between the share prices on the Bogotá stock market and the interest rate as measured by the interbank loan interest rate, which is to some extent affected by monetary policy. The