Fed Holds Interest Rates Steady as Kevin Warsh Says Rising Treasury Yields Tighten Financial Conditions 
BOJ Holds Rates at 1% as Inflation Outlook Eases, October Rate Hike Still Possible 
BOJ Rate Decision in Focus as Sticky Inflation, Weak Yen Shape USD/JPY and Nikkei Outlook 
China Holds Loan Prime Rates Steady for 14th Month as Economic Recovery Remains Uneven 
Meta-backed research finds exposure to ‘untrustworthy’ social media is rare. The fine print is less reassuring 
Gold Slips Below $4050 as Bond Yields Surge to 4.7% on Fed Inflation Concerns – Sell Rallies at $4060 Targeting $3940 
Japan PM Sanae Takaichi Unveils Growth Plan as BOJ Independence Concerns Lift Bond Yields 
Eurozone Bond Yields Fall as Oil Slump Eases Inflation Fears Ahead of Central Bank Meetings 
Japan Services Producer Prices Rise 3.2% in June, Supporting BOJ Rate Hike Expectations 
Gold Shines on Oil Relief: Buy Dips at $4160, Targeting $4305 as Bullish EMAs Dominate 
Today at 12:00, the BoE is expected to make its final monetary policy announcement. The Bank Rate is expected to remain at 4.25% with the adoption of BST. This is expected hold after a quarter-point cut in May, and the consensus among economists and markets is that any further rate cuts will be postponed until August at the latest. Two outside members of the Monetary Policy Committee (MPC) are expected to vote 7 times for a rate cut, while the majority will vote in favor of keeping current rates.
There are multiple significant factors that influence this action, primarily the elevated inflation rate in the UK, which stood at 3.4% in May, far exceeding the BoE's 2% target. The rise in energy and food prices can be attributed to recent geopolitical tensions, such as the Israel-Iran conflict and rising oil prices, which have intensified these inflationary concerns. Additionally, Even though the UK economy contracted in April and is now showing signs of weakness, with sluggish wage growth and a cooling labor market, the BoE may prioritize clear proof that disinflation endures before further rate cuts.
In the coming days, the BoE is likely to reaffirm its commitment to gradual and careful monetary relaxation, stressing that future decisions will be influenced by data and evaluated on a meeting-by-meeting basis. At present, markets are predicting the next rate cut in August and could see another cut down by the end of 2025, subject to further inflation losses. A cautionary message has persisted, as policymakers confront persistent inflation, weak economic growth and ongoing global uncertainties.
