Deutsche Bank on what makes this ECB rate cut cycle unusual

This via Deutsche Bank was ahead of the rate cut (a precap?), that admittedly everyone was expecting.

• What
  makes this ECB rate cut cycle unusual is that it’s happening against
  the backdrop of fairly buoyant equity markets.
• this is the first time since 1960 that ECB or Bundesbank
  rate cuts have started when the DAX has been rising over the preceding
  months. That’s the case whether you look at a 3m, 6m or 12m horizon.
• (DAX) was up around 5% in the months before the ECB started
  cutting in June, and over 15% in the year beforehand

DB add, for comparison:

• That’s
  quite different to the Fed, who’ve often begun to cut rates when
  equities have been rising, including in 2019.

And, DB off up a why, which is of interest:

• But that partly reflects
  the Bundesbank and ECB’s more hawkish reaction function. The ECB has a
  single mandate for price stability, rather than a dual mandate that also
  includes maximum employment. So the Fed have historically had a lower
  bar to clear before cutting rates, reflecting the fact that employment
  is an equal component of their mandate.

This article was written by Eamonn Sheridan at www.forexlive.com.