Cut

Definition ∞ In a financial context, a ‘cut’ refers to a reduction in something, typically a price, fee, or rate. This can also signify a decrease in the supply of a particular asset or a reduction in expected future earnings or dividends. It is a term denoting a downward adjustment in financial metrics or valuations.
Context ∞ News reports frequently discuss ‘cuts’ in relation to monetary policy adjustments by central banks, such as interest rate cuts aimed at stimulating economic activity. In the cryptocurrency market, a ‘cut’ might refer to a reduction in transaction fees on a particular network or a decrease in the block reward for miners. The anticipation of such adjustments often influences market sentiment and trading behavior.