Expected rate of inflation(redirected from Expected Rates of Inflation)
Expected rate of inflation
Expected Rate of Inflation
Investor and public expectations of current or future inflation. These expectations may or may not be rational, but they may affect how the market reacts to changes in target interest rates. For example, the market usually responds well to a cut in interest rates, but if investors expect inflation to go higher in the near future and the Federal Reserve cuts rates, the market may not react positively.