ECB chief economist Lane: inflation will remain above 3% for the remainder of the year.

Labour’s Burnham won the vacant Makerfield parliamentary by-election by 24,927 votes to 15,696 over Reform Party candidate Robert Kenyon, clearing a path for the Greater Manchester mayor to seek the Labour leadership. The 56-year-old has signalled intent to challenge Starmer but must first secure a Commons seat. Investors are watching for policy risk: if Burnham became party leader he could adopt looser fiscal settings than Starmer and Chancellor Rachel Reeves, market participants say. The pound was little changed near $1.3195 after the result. The outcome could have greater impact when UK gilts open in London morning trade.

Bank of Japan Deputy Governor Himino said the BOJ has decided to pause reductions in its bond holdings to give banks and individual investors time to increase purchases, and that the move is not intended to influence fiscal policy.