“…Though a large number of studies examine the interaction between monetary policy and stock market, a vast majority of the literature undertakes single country analysis, focusing mainly on the US and the Euro area (see, among others, Basistha & Kurov, 2008; Bernanke & Kuttner, 2005; Bjørnland & Leitemo, 2009; Bouakez et al, 2013; Fausch & Sigonius, 2018; Fawley & Neely, 2014; Haitsma et al, 2016; Jansen & Tsai, 2010; Jansen & Zervou, 2017; Kholodilin et al, 2009; Laopodis, 2013; Li et al, 2010; Marinescu et al, 2018; Pirovano, 2012; Rigobon & Sack, 2004). Attempts have been made in the literature to analyse the dynamics of monetary policy and stock market interactions across countries, yet these cross-country studies remain relatively scarce (see Abouwafia & Chambers, 2015; Belke & Beckmann, 2015; Ioannidis & Kontonikas, 2008; Saini & Sehgal, 2020; Suhaibu et al, 2017). In this era of globalisation where economies are exposed to global monetary and financial conditions, it is worthwhile to study the interaction of monetary policy and stock markets in an international context for effective policy formulation.…”