world-economy

Brazil's Central Bank Poised to Cut Rates as Iran Deal Eases Global Inflation Pressures

Brazil's central bank is expected to lower its benchmark interest rate by 25 basis points this week. The US-Iran peace agreement, which reopens shipping through the Strait of Hormuz, has eased global inflation concerns and reduced energy price risks weighing on monetary policymakers worldwide. However, central banks across major economies remain cautious about declaring victory over inflation. European officials signaled Wednesday that the geopolitical thaw won't derail rate hikes, while wage growth acceleration in the euro zone threatens to sustain price pressures. South Africa held rates steady this month as inflation came in below forecasts, while UK policymakers paused rate increases following steady May inflation data. The mixed signals suggest central banks will proceed deliberately with policy adjustments despite near-term energy market relief.