In its new strategy statement, the eurozone’s central bank kept a pledge – fought over internally – to deploy “especially forceful or persistent monetary policy measures”

Analysts attribute the volatility in part to foreign outflows, with capital shifting from Indian equities into US treasury bonds and other emerging markets like China and Indonesia.

The question had specifically been about July 9, the deadline for the U.S. and the European Union to negotiate a trade deal or else trigger a 50% tariff on EU imports to take effect.

The latest figures suggest sluggish household demand, especially for services, extended into May after the weakest quarter for consumer spending since the onset of the pandemic. 

Fed Chair Jerome Powell said policymakers could afford to wait so as to understand the effects of Trump’s tariffs, although the president has repeatedly urged the independent central bank to cut interest rates.

There were still 10 members expecting two or more quarter-point cuts this year. But seven now forecast no rate cuts and two are expecting one cut. 

Nearly all US recessions in the last century have been preceded by a spike in oil prices.

The spotlight will instead fall on the BOJ’s updated plan to curtail its purchases of government bonds as it seeks to shrink its footprint in the market.

The main sticking points since May were Beijing’s restrictions on rare earth exports to the US, and Washington’s curbs on the export of chip design technology to China.

Economists polled by Reuters had forecast the CPI climbing 0.2 per cent and increasing 2.5 per cent year on year.

It followed a revised 4.1 per cent increase in April and marked the slowest year-on-year rise since a 3.1 per cent gain in September.

The Reserve Bank of India lowered its key repo rate by 50 basis points to 5.5 per cent. Most analysts had expected a 25-point cut. It is the third reduction in a row since February.