1. Rising interest rates will lead to increased loan costs, financing difficulties, deterioration of the corporate investment environment, and the outflow of foreign capital from investment entities.
2. The decline in interest rates is due to loose monetary policy due to insufficient liquidity or economic downturn and the need to increase investment. However, falling interest rates will lead to outflows of foreign capital invested in financial assets. In other words, "hot money for arbitrage" flows out due to interest differences.