Fed and BoE stay guarded after 100 days of Iran war

Central banks across seven major currency jurisdictions, including the US Fed and BoE, are expected to keep policy rates unchanged as they assess the impact of the Iran war which has surpassed 100 days. The Bank of Japan is likely to continue its exit from low rates with a hike, while the ECB has already delivered its first rate increase since 2023, signalling growing divergence among advanced economies. US inflation rose in May at the fastest pace in over three years, complicating the Fed's outlook under new Chairman Kevin Warsh at the June 16-17 meeting.