We believe that an emergency rate cut is unlikely: QCP Report

While the world financial markets were discussing whether Monday’s big declines were over, an important analysis came from the Singaporean analysis and trading company QCP. In today’s analysis, the company stated that the interest rate policies of the Fed and the Bank of Japan should be clearly seen to understand whether the crisis is over. QCP also claimed that an emergency Fed cut would end all confidence in the institution.

We believe that an emergency rate cut is unlikely: QCP Report

QCP Capital, which provides investment consultancy services on cryptocurrencies, evaluated the recent financial crisis. The company stated that the US state stepped in one day on the declines experienced and ended the panic atmosphere by providing liquidity to the markets.

“Has normalcy returned? It is definitely too soon to say.”

In QCP’s daily analysis, it was emphasised that Bitcoin rose above $56,000, Ether rose above $2500, and the Japanese stock market closed today with a 9% rise after yesterday’s 12% decline, and the following statements were used:

“By the end of the US session, BTC recovered to $56,000 and ETH to $2,500. Macro markets rebounded hard today with Japan’s stock market up 9% today after a 12% drop yesterday. US futures also signal a potential rebound following US ISM data showing service sector expansion in July. Has normalcy returned? It is definitely too soon to say. While the VIX has fallen from its peak of over 65 yesterday, it remains above 30. Asset prices are likely to stay volatile and markets remain choppy until clarity on Fed and BoJ policy is provided.”

“Emergency rate cut ends confidence”

In the analysis, QCP Capital also stated that they do not expect the Fed to make an emergency interest rate cut, and if the institution takes such a step, this may reduce confidence in the Fed and increase panic.

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