In 2024, key central banks, including the US Federal Reserve and the European Central Bank, initiated interest rate cuts. This marks a significant shift, as lower rates typically stimulate increased borrowing and lending, driving more activity in financial markets and supporting overall economic growth. The resulting boost in liquidity can serve as a catalyst for GDP expansion.
Taking a medium-term perspective we believe that this monetary easing will also have significant, positive implications for private assets. This report outlines why the path to lower rates is a welcome stimulus.