Skip to main content

Rate Cut Odds

Definition

Rate cut odds refer to the market’s perceived probability that a central bank will reduce its benchmark interest rate. These odds are typically derived from futures markets and reflect investor expectations regarding future monetary policy adjustments. A higher probability of rate cuts often suggests anticipation of economic slowdowns or efforts to stimulate growth. In the digital asset context, lower interest rates can make traditional investments less attractive, potentially increasing appeal for alternative assets like cryptocurrencies.