ECB and BOE hold rates

The European Central Bank and the Bank of England both maintained their benchmark interest rates at 2% and 3.75% respectively on Thursday.

Despite the hold, both central banks issued hawkish warnings, suggesting that future hikes may be necessary if energy price shocks from the Iran war trigger persistent inflation.

ECB President Christine Lagarde noted that the economic outlook is 'highly uncertain' and depends heavily on the duration of the Strait of Hormuz blockade.

Similarly, BOE Governor Andrew Bailey stated that policymakers face a 'most difficult combination' of slowing growth and rising costs that may require a more aggressive stance later this year.