Reserve Bank of Australia Governor Bullock said developments since then suggest that, despite a slowdown in Australia's economic growth, some upside risks to inflation appear to be emerging.

Brazilian real fell to an intraday low against the dollar; Brazilian interest-rate swaps surged after the government revised its aid policy.

ECB Vice President VUJCIC said market pricing for further ECB rate hikes has been driven mainly by rising energy prices, but policymakers will judge next moves on broader economic indicators rather than energy alone. He warned that if inf stays elevated through the autumn and hits household incomes and consumption it would weigh on GDP; the ECB will monitor incoming months and adjust policy accordingly. Global bond yields have risen to pre-financial-crisis levels amid higher inf and rate expectations plus large government and tech-sector issuance. VUJCIC said those moves do not pose financial-stability risks because euro-area banks are well capitalized and liquidity is ample.