🔍【Morgan Stanley reiterates rate cut expectations, showing confidence amid global market turmoil】🔍
Morgan Stanley reaffirmed its expectations on Monday that the Federal Reserve will cut interest rates by 25 basis points in September, despite the recent sharp decline in global markets. The bank's economists pointed out that although the market reacted strongly to the latest interest rate decision of the Bank of Japan and the weaker non-farm data in the United States, these data did not mark a fundamental change in economic conditions, so Morgan Stanley stuck to its long-term expectations.
📊 Fed rate cut expectations:
Maintain belief: Morgan Stanley firmly believes that the Federal Reserve will cut interest rates by 25 basis points in September. Market reaction: Despite the sharp fluctuations in global markets, Morgan Stanley believes that the current data is not enough to change its rate cut forecast.
🇯🇵 Yen and Bank of Japan policy:
Yen support: Morgan Stanley expects that the possible interaction between the Fed's rate cut and the Bank of Japan's rate hike will support the yen. Rate hike outlook: The bank's initial view remains unchanged, and it expects the Bank of Japan to raise interest rates in January 2024.
⚠️ Summary:
Expected rate cut: The Fed is expected to cut interest rates by 25 basis points in September. Market Outlook: The Bank of Japan's policy changes may have a positive impact on the yen.
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