He expects a quarter-point cut in December, to take the main rate down to 3%, and cuts at every meeting after that until June. For investors, he said investment-grade fixed income still offers an attractive chance to secure higher yields, and he said small- and mid-cap stocks in Europe offer attractive value and should benefit from the rate cuts.

The European Central Bank cut interest rates for the third time this year on Thursday in a nod to sluggish economic growth, some softening in an otherwise rock-solid labour market and easing consumer price pressures.

As expected, the ECB cut rates by 25 basis points, with markets pricing in further policy easing.