In the process of economic regulation, rashly loosening monetary policy at a high level can easily lead to the resurgence of high inflation.
Moreover, once the market falls into a genuine crisis, it will find itself in a passive situation with no solutions available; after all, continuing large-scale money printing operations is not a long-term solution, and the final outcome will inevitably be the collapse of the credit system and a significant devaluation of the currency.
In light of this, adopting a moderate interest rate cut to prevent potential economic problems is undoubtedly a prudent and reasonable strategic choice.
As for the current situation, the action of lowering interest rates is not equivalent to large-scale monetary easing; it is essentially a proper regulatory tool.
From a long-term perspective, interest rates will remain at a relatively high level for an extended period.
With the continuous increase in the variety of cryptocurrencies, funds are showing a tendency to diversify, which will undoubtedly impact the overall market performance.
The future market trend is likely to exhibit a structural and localized upward price movement, rather than a comprehensive and irrational surge.
It is important to clarify that the initial intention of implementing interest rate cuts is to prevent the economy from falling into a depression, rather than simply to stimulate the market.
Moderate interest rate cuts aim to avoid the negative effects brought about by excessive economic tightening, and are certainly not intended to trigger a new round of inflation.