ECB’s rate cut: Decoding the impact on global investments 

As widely expected, the European Central Bank (ECB) has cut its deposit facility rate by 25 basis points to 3.50% last week. The move marks the second time the ECB has eased rates this year. For investors with diverse international portfolios, this offers fresh perspectives on European assets and global investment strategies.

The ECB’s decision stems from its assessment that “the dynamics of underlying inflation and the strength of monetary policy transmission are now appropriate to take another step in moderating the degree of monetary policy restriction.”

However, ECB President Christine Lagarde emphasized the Bank’s commitment to a data-dependent approach, saying that decisions will be made on a meeting-by-meeting basis. This signaled a cautious strategy that investors should keep in mi