Global Monetary Scene Adjusts Amid Iranian Developments

The global monetary scene is set to adjust at the end of July, with a focus on the Federal Reserve (FED) and Bank of England (BoE) decisions, while geopolitical tensions between the US and Iran continue to influence markets. The ongoing conflict has led to increased oil prices and inflation, which are now key factors in policy evaluations. Despite expectations for a September rate hike by the FED, the central bank is likely to adopt a cautious approach, maintaining flexibility amid regional risks. Similarly, the BoE will face persistent inflationary pressures but also show prudence in its September decision, avoiding premature steps that could impact the UK economy. Investors should closely monitor nuances in MPC voting patterns, as internal divisions may signal tensions among members regarding the pace of monetary normalization.