Interest rate acts like gravity on asset prices. The higher the rate, greater the gravitational force. Bangladesh market is no different. It’s a universal law. Looking at last 144 months of data, you can see negative correlation between short term risk free rate and equity index. Animated Line Chart - Interest Rate vs DSEX Short-Term Risk Free Rate vs DSEX This interactive chart represents the dynamic relationship between short-term risk-free rates and the DSEX. Source: Bangladesh Bank and DSE