Rate Path

Rate path means the expected future movement of interest rates over time. In simple terms, it shows whether rates are expected to rise, fall, or stay high. The rate path is important because many financial assets depend on future interest rate expectations. Stocks, bonds, mortgages, currencies, and business investment can all react to changes in the expected rate path. For example, if markets expect fewer rate cuts next year, the expected rate path has moved higher. Rate path is not the same as the current rate. The current rate is today’s level, while the rate path is the expected future direction.