Asset management giant Capital Group bets that the European Central Bank will raise interest rates in 2026, contrary to mainstream expectations.

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 cuts rates under the leadership of a new Federal Reserve chairman, forcing the European Central Bank to take action, the bank may ease its policy. Currently, the money market sees less than a one-third chance of a 25 basis point rate cut.