Unchanged

• UK borrowing costs experienced the fastest decline in Europe on Wednesday following news that inflation unexpectedly remained steady at 2%. • Market indicators suggest the Bank of England is unlikely to raise interest rates until November, pushing back previous expectations of a September increase. • Suren Thiru of ICAEW notes that softer May data makes an interest rate hold during Thursday's meeting highly probable.

• Eurostat reports that the severe material and social deprivation rate for EU youth (aged 15-29) remained unchanged at 5.8% in 2025, matching the 2024 figure. • This rate is slightly lower than the 6.3% deprivation rate observed across the total EU population. • Significant regional disparities exist, with Romania (15.1%), Greece (14.7%), and Bulgaria (14.0%) recording the highest shares of deprived youth.

• New Federal Reserve Chair Kevin Warsh held his first news conference on Wednesday after the central bank decided to keep its key interest rate unchanged. • Despite the hold, nearly half of the Fed's policymakers indicated they could support an interest rate hike later this year. • This decision reflects the central bank's ongoing struggle to balance inflation control with economic stability.

Fed officials cite elevated inflation, slow job growth and uncertainty in Middle East as reasons for holding ratesSign up for the Breaking News US email to get newsletter alerts in your inboxThe US Federal Reserve left interest rates unchanged after its latest board meeting, defying once again Donald Trump’s call for a cut as the central bank prepares for a leadership shake-up next month.On Wednesday, Fed officials continued to cite elevated inflation, slow job growth and uncertainty in the Middle East as reasons why rates were left untouched. Continue reading...