Web Trader MT5
During an interest-rate increase cycle, markets try to estimate where the central bank will stop. That expected highest policy rate is called the terminal rate. If rates are currently 4% and investors expect two more increases to 4.5%, they may describe 4.5% as the expected terminal rate. The figure is not permanent, and it is not always announced as one fixed target. New inflation, wage, growth, or employment data can change expectations before the central bank reaches it. Once the peak is reached, rates may stay there for a time before cuts begin. The terminal rate describes the top of a particular cycle, not the highest rate possible in history.
Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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