Investment giant Capital Group is wagering that the European Central Bank will implement at least one interest rate hike this year, a stance that runs counter to prevailing market expectations. The firm, which manages assets totaling $3.3 trillion, believes such a move would significantly strengthen the euro against the U.S. dollar.

In a separate development, the Bank of England's Chief Economist, Huw Pill, has advocated for maintaining the current policy stance. Pill cautioned that interest rates need to be held at 3.75% for an extended period to guide inflation back to its target, adding that the current borrowing costs are not causing significant distress to UK businesses.