Mark Veldon, Co-Head of EMEA at AlixPartners, comments on the European Central Bank rate decision (30.10.25)

“After eight consecutive rate cuts this year, the ECB has opted to maintain its cautious stance, holding rates steady at 2%. This suggests a pragmatic approach from the bank, as Eurozone inflation unexpectedly rose to 2.2% in September, marking the first increase above the ECB’s target since April.

“For investors, this stability presents a slightly mixed picture. Steady rates provide a supportive environment for deploying capital, even as inflation continues to exert pressure on margins and exit valuations. Supply chain uncertainty, especially in high-demand areas such as semiconductors and advanced manufacturing, may temper appetite for certain industrial assets in the near term. Yet, the recently signed EU-India trade agreement signals promising long-term avenues for investment and could help unlock new growth corridors over time.”