Central bank interest rates are the foundation of all financial markets. They affect everything from mortgage costs to stock valuations.
Asian Central Bank Rates
| Central Bank | Country | Key Rate |
| Bank of Japan (BOJ) | Japan | 0-0.5% |
| People's Bank of China (PBOC) | China | ~3.5% |
| Reserve Bank of India (RBI) | India | ~6.5% |
| Bank of Korea (BOK) | South Korea | ~3.5% |
| Bank Indonesia (BI) | Indonesia | ~6% |
How Rates Affect Stocks
Lower rates = bullish for stocks because:
- Borrowing is cheaper → companies invest more
- Bonds yield less → investors move to stocks
- Future earnings are worth more (lower discount rate)
Higher rates = bearish for the opposite reasons.
The BOJ Exception
Japan has had near-zero rates since the late 1990s — the longest low-rate period in modern history. This has made the yen a popular funding currency for carry trades.