Ukrainian President Zelenskiy will visit the front line with the newly appointed commander-in-chief.

Sources said ECB policymakers are prepared to raise the policy rate at the September meeting, lifting it from 2.25% to 2.50% to offset economic fallout from the Iran conflict, but have no intention of signalling further tightening beyond September. Euro area inflation is near 3%, the conflict persists and growth shows resilience; the September hike is already built into the ECB’s June economic projections and is aimed at avoiding a repeat of the 2022 energy-driven inflation surge. Long-term inflation expectations remain anchored near the 2% target. Markets currently price one to two additional ECB hikes as possible.

PBOC conducted 239.5 bln yuan of 7‑day reverse repos today; bids and allotment both 239.5 bln yuan. Operation rate 1.40%, unchanged.