The central banks of the Eurozone (ECB), Sweden (Riksbank), Norway (Norse Bank), Australia (RBA), and New Zealand (RBNZ) are all expected to keep their policy rates on hold throughout 2026.

J.P. Morgan predicts the Bank of Japan will be the only developed market central bank to tighten monetary policy in 2026, raising its policy rate to 1% by year-end.

J.P. Morgan forecasts one further 25 basis point interest rate cut from the US Federal Reserve in January 2026.

J.P. Morgan forecasts the 10-year German bund yield at 2.75%, the 10-year US Treasury yield at 4.35%, and the 10-year UK gilt yield at 4.75% by the end of 2026.

The Bank of England is expected to cut its policy rate to approximately 3.5% by the middle of 2026.