The Impact of Interest Rate Changes on Stock Market Volatility and Perception of youth on it.

This study investigates the relationship between central bank interest rate adjustments and stock market volatility, with a focus on India’s financial markets a small scale study also shows how it is perceived by youth. Using econometric models (GARCH, VAR) and event study analysis, we examine how monetary policy decisions influence short-term and long- term market fluctuations. Key findings indicate that unexpected rate hikes significantly increase volatility, particularly in interest-sensitive sectors like banking and real estate. The study provides actionable insights for investors, policymakers, and corporate managers to navigate rate-driven market turbulence.