Mark Veldon, Co-Head of EMEA and UK Country Co-Leader at AlixPartners, comments on the European Central Bank rate decision:

“After last month's rate decision, the European Central Bank (ECB) has cut its rates once again to 2.5%. This likely won’t come as a surprise as the ECB is staying consistent with its current plan of monetary easing. Some commentators predict the ECB will further decrease rates to 1.75% by September, maintaining the difference between the ECB and the slower-moving UK rate. 
 
“For private equity and wider investment activity, the ECB’s decision will reduce borrowing costs and improve cash flow, leaving buyout funds likely optimistic about the future. Other sectors could share this optimism as these low rates encourage more leveraged deals, but investors will need to read the changing landscape to take advantage of any positive market momentum.”