Traders are increasingly inclined to think that the European Central Bank's interest rate cut cycle is basically over. According to the money market, the ECB, the Bank of Sweden, and the Bank of Norway are expected to keep interest rates unchanged when they meet tomorrow, and generally keep interest rates stable until the end of 2026. Even the Bank of England, which is expected to cut interest rates on Thursday, only fully anticipates that it will cut interest rates again next year, despite weakening inflation data released on Wednesday, increasing the possibility of another rate cut. This is a stark departure from market sentiment earlier this year. At the time, the market generally believed that European central banks would cut interest rates sharply by 2026. Similarly, the Swiss central bank, which previously took the lead in cutting interest rates and lowered interest rates several times, has suspended interest rate cuts; interest rates have now dropped to zero. “Many of these countries have cut interest rates many times — policy interest rates are no longer tight,” said Fidelity International Fund Manager Mike Riddle. “The most notable change in interest rates over the past month is that some central banks that previously took the lead in cutting interest rates are now expected to raise interest rates instead of continuing to cut interest rates.”

Traders are increasingly inclined to think that the European Central Bank's interest rate cut cycle is basically over. According to the money market, the ECB, the Bank of Sweden, and the Bank of Norway are expected to keep interest rates unchanged when they meet tomorrow, and generally keep interest rates stable until the end of 2026. Even the Bank of England, which is expected to cut interest rates on Thursday, only fully anticipates that it will cut interest rates again next year, despite weakening inflation data released on Wednesday, increasing the possibility of another rate cut. This is a stark departure from market sentiment earlier this year. At the time, the market generally believed that European central banks would cut interest rates sharply by 2026. Similarly, the Swiss central bank, which previously took the lead in cutting interest rates and lowered interest rates several times, has suspended interest rate cuts; interest rates have now dropped to zero. “Many of these countries have cut interest rates many times — policy interest rates are no longer tight,” said Fidelity International Fund Manager Mike Riddle. “The most notable change in interest rates over the past month is that some central banks that previously took the lead in cutting interest rates are now expected to raise interest rates instead of continuing to cut interest rates.”