Market Views: Positioning European assets in portfolios after ECB rate cut

The European Central Bank's (ECB) decision to cut interest rates for the first time since 2019 marked a divergence in monetary policy between the US and European economies. On June 9, the ECB lowered its main deposit rate by 25 basis points from 4% to 3.75%. The move follows rate cuts from other central banks in Europe such as Sweden and Switzerland. ECB President Christine Lagarde stated that key reasons to start lowering the policy rate included the outlook for lower inflation…