Institutions: The European Central Bank will consider raising interest rates before the end of the year.

Franklin Templeton stated that the European Central Bank will begin considering interest rate hikes by the end of this year, as defense spending may stimulate economic growth. David Zahn, head of the European fixed income division, mentioned that if looking ahead to 2026, the economic situation in Europe will be very clear. The inflation rate will remain low, and economic growth will be very strong. This is a view contrary to market expectations. Currently, traders generally expect the European Central Bank to cut interest rates three more times this year, each by 25 basis points, and then maintain the deposit rate at 1.5% until mid-next year.