Influence Of BI Rate, FED Rate, And Inflation On Composite Stock Price Index (JCI)

Abstract

Abstract - This study has a direction to explain the impact of BI Rate, FED Rate, and Inflation simultaneously, partially, and potentially dominant variable influence on the Composite Stock Price Index by conducting a multiple linear regression analysis. The data conducted is monthly data from January 2013 to December 2020 with a sample of 96 time series data for each free and bound variable. The analysis shows that BI Rate, FED Rate, and Inflation simultaneously have a significant effect on the Composite Stock Price Index. As the results of the analysis describe the first, BI Rate partially shows the negative influence on the Composite Stock Price Index; second, the FED Rate has no effect on the Composite Stock Price Index; third, inflation represents a negative influence on the Composite Stock Price Index. In the end, variables that affect the dominant potential of the Composite Stock Price Index are variables of Rupiah Exchange Rate. The results in this study explain the diversity of news on changes in the FED Rate so that investors are confident in their own self-assessment to provide results in investing in stocks.Keywords: BI Rate, FED Rate, Inflation, Composite Stock Price Index.