This paper was written to examine the impact of interest rates and inflation on the stock prices of companies in the banking sector listed on the IDX. The primary focus of this paper is to understand how these two macroeconomic variables influence stock values in a sector that is crucial to the Indonesian economy. The methodology employed in this paper utilizes a quantitative approach using multiple linear regression analysis. The data used in this study consists of existing secondary data obtained directly from the financial statements of each banking company listed on the IDX, as well as interest rate and inflation data published by Bank Indonesia (BI) and the Central Statistics Agency (BPS). The results indicate that interest rates and inflation are not correlated with stock prices, either partially or simultaneously. A suggestion for future research is to incorporate additional indicators to obtain more meaningful results.
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