Morgan Stanley firmly expects the Federal Reserve to cut interest rates by 25 basis points in September.
Odaily Planet Daily Report: Morgan Stanley reiterated its expectation on Monday that the Federal Reserve will cut interest rates by 25 basis points in September, despite the recent significant decline in global markets. The bank's economists pointed out that although the market reacted strongly to the Bank of Japan's latest interest rate decision and the weaker-than-expected U.S. non-farm data, they do not represent a fundamental change in the economic situation, and therefore they maintain their long-standing expectation that the Federal Reserve will cut interest rates by 25 basis points in September. Looking ahead, Morgan Stanley emphasized that the potential interaction between the Federal Reserve's interest rate cut and the Bank of Japan's interest rate hike may support the Yen, and their preliminary view remains unchanged, expecting the Bank of Japan to raise interest rates in January next year. (Jinshi)
