Everyone is waiting for a rate cut, but many people still don't know why a rate cut is good for the market. Let me explain it to you from three aspects.

1. A rate cut means lower borrowing costs, which usually increases liquidity in the market. This will boost consumption and investment.

2. A rate cut usually reduces the yield on fixed-income investments (such as bonds), so many people will turn their funds to other markets with higher yields.

3. A rate cut may trigger inflation expectations because more money flows into the market and demand for goods and services increases. If the market expects inflation to rise, investors may buy assets to hedge against inflation, which may also drive the market up.