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                          Fed Holds Rates Steady, but More Officials See Higher Rates as Next Move

Nine of 19 officials projected at least one rate increase by year’s end, up from none in March, while only one official projected a cut.
The Fed’s shift reflected an economy running hotter than expected, with inflation reaccelerating owing to the Iran war and an AI boom.

                          U.K. Unemployment Falls Below 5%

The U.K.’s unemployment rate inched down to 4.9% in the three months through April, reinforcing expectations for the Bank of England to hold interest rates.
Annual wage growth, excluding bonuses, remained flat at 3.4%, while U.K. inflation stalled at 2.8% in May.
The Organisation for Economic Co-operation and Development upgraded its 2026 U.K. growth forecast to 0.9% but expects the largest rise in unemployment.

                          Brazil’s Central Bank Keeps Cutting Despite Hot Prices

Brazil’s central bank cut its Selic benchmark lending rate to 14.25% from 14.5% for the third consecutive time.
The central bank faces high inflation, sluggish economic growth, and rising government spending, complicating future rate cuts.
Uncertainty from Middle East conflicts and geopolitical tensions affects global financial conditions and complicates rate decisions.

                          Philippine Central Bank Hikes Rates to Get Inflation Back on Target

The Philippines’ central bank raised its benchmark overnight reverse repurchase rate by 25 basis points to 4.75% due to inflation fueled by the Middle East conflict.
Bangko Sentral ng Pilipinas projects average headline inflation will breach its 4.0% tolerance ceiling in 2026 and 2027.
BSP Governor Eli Remolona said the central bank has “a lot” of room to tighten, with a 50-basis-point move possible.

                          U.S. Retailers’ Sales Growth Accelerated Last Month

U.S. retailers’ sales grew 0.9% to $763.7 billion in May, exceeding expectations, the Commerce Department said.
The Labor Department reported gasoline prices rose faster in May, while spending at furniture and motor vehicle dealers also increased.
Year-over-year inflation reached a three-year high of 4.2% in May, driven by the Iran war pushing energy prices higher.

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