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Umar Ahmad
@3viling
What are the levels on interest rate cuts which are bullish for the markets? Interest rate cuts often boost markets, but their impact depends on how big the cut is and the economic situation. Here’s a simple breakdown of how different rate cuts can affect stocks and crypto: ### 1. **Small Rate Cuts (0.25% or 25 basis points)** - **What it means**: A small rate cut shows the economy is slowing down a bit, but nothing too alarming. The central bank is being careful and just trying to help growth along. - **Market Reaction**: Small cuts can give stocks and crypto a gentle push upward. It makes borrowing cheaper, encouraging companies to expand and investors to take on more risk.
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Umar Ahmad
@3viling
### Best Rate Cuts for a Bullish Market: - **Small to moderate cuts (0.25% to 0.50%)** are typically seen as the most positive for markets because they encourage growth without signaling too much worry. - **Larger cuts (0.75% or more)** can create short-term excitement but may raise concerns about deeper economic issues. In short, moderate cuts tend to be the sweet spot for boosting market optimism without creating fear of economic trouble.
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