Can the record low European rate stave off deflation?

Taha Lokhandwala looks at the impact of the ECB’s decision to cut interest rates

clock

The move last week by the European Central Bank (ECB) to cut its baseline rate from 0.5% to 0.25% sent the euro tumbling against the dollar and caused rally in equities.

October's inflation report from the ECB made grim reading. Concerns about more deflation took centre stage as the annual rate of inflation fell to 0.7% on the consumer prices index (CPI). This i...

To continue reading this article...

Join Professional Pensions

Become a Professional Pensions Lite Member today

  • Three complimentary articles per month covering the latest real-time news, analysis and opinion from the industry
  • Receive important and breaking news stories via our two daily news alerts
  • Hear from industry experts and other forward-thinking leaders

Are you a trustee, investment consultant or in-house pension and benefit scheme professional? You can apply for full complimentary access here

Join now

 

Already a Professional Pensions
member?

Login

More on Investment

No guarantee DC megafunds will lead to higher investment returns

No guarantee DC megafunds will lead to higher investment returns

PPI report finds ‘no guaranteed correlation’ between scheme size and level of investment return

Martin Richmond
clock 02 June 2026 • 4 min read
Nest commits £200m to climate technologies through IFM partnership

Nest commits £200m to climate technologies through IFM partnership

Scheme said this helps build on its ambition to increase its private markets allocation to 30%

Holly Roach
clock 02 June 2026 • 2 min read
The growing case for real estate debt

The growing case for real estate debt

Ashley Manning-Brown says investor attention is broadening beyond corporate direct lending

Ashley Manning-Brown
clock 29 May 2026 • 5 min read
Trustpilot