Rate Cut Cycle

Rate cut cycle means a period when a central bank lowers interest rates multiple times. In simple terms, it is a phase of repeated rate cuts. A rate cut cycle is important because it can lower borrowing costs, support economic growth, and change investor behavior. Markets often try to predict when a rate cut cycle will begin and how deep it will be. For example, if the Fed cuts rates several times over a year to support a weakening economy, that is a rate cut cycle. A rate cut cycle does not always mean the stock market will rise. If cuts happen because the economy is weakening badly, investors may still be cautious.