Live Updates > Live Update Details
2026-02-14 01:05:56
Capital Group, a giant in asset management, predicts the European Central Bank will raise interest rates in 2026, contradicting market consensus. Capital Group, managing $3.3 trillion in assets, stated that the European Central Bank (ECB) will implement at least one interest rate hike this year, which will significantly boost the euro against the dollar. This view differs significantly from the expectation of most investors and economists that the ECB will maintain interest rates unchanged until 2027. Some market participants even predict that if the Federal Reserve, under its new chairman, initiates rate cuts, forcing the ECB to follow suit, the ECB may shift to an easing policy. Current currency market pricing indicates that the probability of a 25 basis point rate cut by the ECB is less than one-third. Edward Harrold, Chief Investment Officer at Capital Group, predicts that European economic growth will accelerate, driving a divergence between the ECB and the Federal Reserve's monetary policy paths. In an interview, he mentioned that this trend will push the euro to the upper end of the 1.20 range by the end of the year. The euro was last quoted at approximately 1.1860 against the dollar on Friday.
