The ECB cut holds up where it counts

The ECB’s rate cut is supporting a lower exchange rate, and may help eurozone companies recover some latent earning potential.

Lower interest rates and loose monetary policy stances have proved to be positive for equity markets. The recent interest rate cut by the European Central Bank adds even greater support for this theory.

In brief, the ECB decision to cut the main interest rate suggests it doesn’t want to jeopardise the recovery of the eurozone, which has just begun to gain some traction and investor interest.

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