Mark Veldon, Co-Head Of EMEA At AlixPartners, Comments On The ECB Base Rate Decision

"The ECB's decision to hold rates at 2% reflects a careful balancing act as inflationary pressures re-emerge across the Eurozone. While growth remains subdued, the persistence of inflation and wage pressure has limited the bank's room for manoeuvre in the near term.

"For PE investors, this reinforces the need for discipline. Stable but elevated rates provide greater clarity on financing conditions, yet they continue to test valuation expectations and exit timing. We are seeing increased focus on operational value creation, bolt-on acquisitions and sectors with more resilient pricing power, rather than reliance on multiple expansion alone.

"That said, sustained policy stability does help restore confidence. As inflation gradually cools and the path to future easing becomes clearer, we expect deal activity to build selectively, particularly in markets where balance sheets are strong and long-term growth fundamentals remain intact."

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