In the US, the Federal Reserve (Fed)  maintained its federal funds rate at a range of 5.25% to 5.5% in a decision intended to allow officials to “assess additional information” on the economy. Fed Chair Jerome Powell  warned that “a few months of good data are only the beginning” of what it would take to build confidence that inflation is moving sustainably towards its target and emphasised that there is still a long way to go. 

Elsewhere, the European Central Bank (ECB)  held its key interest rate at 4% following a series of rate increases designed to address persistent inflationary pressures across the eurozone. Policymakers expect the region’s economy to remain weak for the rest of this year, according to ECB President Christine Lagarde ; nevertheless, looking further ahead, growth is forecast to pick up once inflation starts to moderate.