Fed and BoE stay guarded after 100 days of Iran war

Central banks across major economies, including the US Federal Reserve and Bank of England, are expected to keep interest rates steady as they assess the impact of the Iran war that has now surpassed 100 days. The US Fed's June 16-17 meeting, the first under new Chairman Kevin Warsh, comes against a backdrop of May inflation rising at the fastest pace in over three years, though officials are widely expected to hold rates. Meanwhile, the ECB has already delivered its first rate hike since 2023, the Bank of Japan is expected to continue exiting low rates, and divergence is growing among advanced economies.