The asset management giant Capital Group bets that the European Central Bank will raise interest rates in 2026, contrary to mainstream views

Capital Group, an asset management company with an asset management scale of USD 3.3 trillion, stated that the European Central Bank will raise interest rates at least once this year, which will significantly boost the euro against the US dollar. This view contradicts the expectations of many investors and economists who believe that the European Central Bank will keep interest rates unchanged until 2027. Some even predict that if the United States lowers interest rates under the leadership of the new Federal Reserve Chairman, forcing the European Central Bank to take action, the bank may ease its policy. Currently, the money market believes there is less than a one-third chance of a 25 basis point rate cut