Asset management giant Capital Group's bet that the European Central Bank will raise interest rates in 2026 contradicts mainstream views Capital Group, an asset management company with a management scale of $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 viewpoint contradicts the expectations of many investors and economists that the European Central Bank will keep interest rates unchanged until 2027. Some even predict that if the United States cuts interest rates under the leadership of the new Federal Reserve chairman to force the European Central Bank to take action, the bank may relax its policies. At present, the money market believes that the possibility of a 25 basis point interest rate cut is less than one-third. However, Edward Harrold, Investment Director of Capital Group, predicts that European economic growth will accelerate, leading to a divergence in policy paths between the European Central Bank and the Federal Reserve. He said in an interview that this will push the euro to the "high-end 1.20 range" by the end of the year. The euro against the US dollar was reported at around 1.1860 on Friday. (Sina Finance)