With the ECB putting rate hikes on pause for the time being, the focus for investors over the coming year is expected to shift towards the timing and intensity of potential interest rate cuts. Some economists are predicting the first ECB rate cut in Q2 2024, while others are foreseeing later in Q3 next year.
Monetary policy within the Eurozone is, however, complicated by the diverse economic landscape. Divergence in inflation remains high but is likely to normalise by 2024, with economists forecasting inflation to hover around the 2% mark in most European regions.
While the uncertain economic outlook and higher interest rates have curtailed investment in some regions, Europe still stands as the prime destination for global cross-border capital.
Real Estate Credit Investments Limited (LON:RECI) is a closed-end investment company that specialises in European real estate credit markets. Their primary objective is to provide attractive and stable returns to their shareholders, mainly in the form of quarterly dividends, by exposing them to a diversified portfolio of real estate credit investments.