Asian Stocks Slide as Nikkei Leads Losses on Tech Selloff and Rising U.S.-Iran Tensions 
BOJ May Raise Japan Growth Forecast While Keeping Focus on Inflation Risks 
Gold Prices Slip as Oil Rally Fuels Inflation Fears, Strengthens Dollar 
ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
Malaysia Q2 Economy Grows 5.8%, Beating Forecasts on Strong Tech Exports and Domestic Demand 
South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
RBNZ Raises Interest Rates to 2.50%, Signals More Tightening as Inflation Risks Persist 
BOJ Raises Interest Rates to 1% as Inflation Pressures Persist 
Supreme Court Backs Lisa Cook, Defends Federal Reserve Independence Against Trump Firing Attempt 
European Regulators Clash With U.S. Treasury Over Private Credit Transparency 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
Brazil Weighs IP Curbs, Patent Suspensions After New U.S. Tariffs 
Fed Reaffirms 2% Inflation Goal, Vows Forceful Action to Anchor Price Expectations 
UBS Boosts China Tech Bets, Adds Kuaishou and Meituan to Focus List 
The Bank of England (BoE) is expected to keep interest rates steady at 4.25% on Thursday, as policymakers assess weakening inflation and economic signals alongside rising energy costs from the Israel-Iran conflict. British inflation eased slightly in May after a sharp rise in April, with services price growth — a key BoE concern — slowing notably. Wage growth also decelerated, and labor market data showed signs of softening.
April’s economic output contracted the most since 2023, partly due to the end of a home sales tax break and U.S. President Donald Trump’s new trade tariffs. Despite these factors, BoE Governor Andrew Bailey and his Monetary Policy Committee (MPC) remain cautious about rate cuts. Oil prices have surged 8.5% within a week due to Middle East tensions, adding inflationary pressure.
A Reuters poll shows a likely 7-2 MPC vote in favor of holding rates. Most economists expect the next 25-basis-point rate cut in August, with a further drop to 3.75% by year-end. In May, the MPC narrowly voted to cut rates, revealing divisions over the pace of monetary easing.
The BoE has matched the U.S. Federal Reserve in rate cuts since mid-2024, although it trails the European Central Bank, which recently reduced rates after eurozone inflation hit its 2% target. UK interest rates are forecasted to fall more quickly than in the eurozone but similarly to the U.S., as both central banks weigh inflation risks from tariffs and oil prices.
Analysts warn the BoE may struggle to balance growth concerns with inflation, especially amid geopolitical uncertainty. However, a recent UK-U.S. tariff deal may help cushion the economic impact. The BoE continues to signal a gradual, data-driven approach.
