Information on changes in inflation and interest rates is one of the issues that tend to influence investment decisions in the Indonesian capital market. This study observes from 1 February 2023 to 30 April 2023 at 47 firms in the banking sector. This study finds that the performance of stock returns on risk from the banking sector as a whole has not reached an optimal level. Specifically, the evidence also shows that there is a tendency for returns to decline from February to April 2023 as the inflation rate declines. The findings of this study also imply that a decrease in returns also occurs at a fixed interest rate. In addition, this study also finds that even though there is a decrease in returns but the difference of the value between periods are insignificant.
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