I have a solution to this.
Simply highlight the clip that you want to ripple rate stretch and alt copy it up on the the track above. Now you have two clips the same, on top of each other. Change to the ripple edit tool, B on keyboard for me, and ripple edit the top clip to the length that you desire. This will create a gap. Now rate stretch (R) the clip underneath to match the same length as the top one and fill the gap. Select and delete the clip on the top.
Its a quick two step way to achieve the same thing.