On December 17, news surfaced that traders are increasingly inclined to believe that the interest rate cut cycle of European central banks has essentially come to an end. The money market indicates that the European Central Bank, the Swedish Central Bank, and the Norwegian Central Bank are expected to maintain interest rates at tomorrow's meetings, and keep rates stable until the end of 2026. Even the Bank of England, which is expected to cut rates on Thursday, is only fully anticipated to lower rates once more next year, despite the soft inflation data released on Wednesday, which has increased the likelihood of another rate cut. This is in stark contrast to market sentiment earlier this year. At that time, the market widely believed that European central banks would significantly cut rates before 2026. Similarly, the Swiss National Bank, which was the first to cut rates and has lowered rates multiple times, has also paused rate cuts, with current rates down to zero. “Many of these countries have already made multiple rate cuts - the policy rate is no longer tightening,” said Mike Riddell, a manager at Fidelity International. “The most striking change in interest rates over the past month is that some central banks that previously cut rates first are now expected to raise rates, rather than continue cutting.”