The Bank Of England's Rate Cut Could Boost US Equities

The Bank of England met on Thursday and voted 9–0 in favor of an interest rate cut. The central bank will lower its key interest rate for the first time in seven years to 0.25 percent from a previous 0.5 percent.

Although the move was highly expected by market participants, the British pound shed more than 1.50 percent, and some analysts and market experts are stating that U.S. stocks could gain from the interest rate cut made "across the pond."

Related Link: Bank Of England Slashes Interest Rate To 0.25%, Notes "Indicators Have All Fallen Sharply"

JMP Securities President Mark Lehmann was a guest on CNBC's "Squawk Box" Thursday morning; he suggested that the rate cut is a further sign of a "slowdown" in Europe's economy, while also marking a "colossal change of what we're expecting" in the continent.

Meanwhile, the U.S. economy is growing, albeit at a lower growth rate than some had hoped. Compared to the "slowdown" in Europe, U.S. equities and investments are more attractive, if not by default.

"I think it's going to point you back to the [United States] ... for the fourth quarter," he said while adding that 2017 will be a "very good" year for the stock market, and for new IPOs.

Bottom line, central banks across the world eventually run out of "things to do on the economic side and point to things on the innovation side." He followed up by stating, "On the innovation side, [the United States] is second to none."

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