Bank of Japan: firms continue to pass on cost increases from rising wages.

Bank of Japan Governor Ueda said close coordination with the government is essential.

ICAEW analyst Suren Thiru said Bank of England minutes show a growing hawkish tilt after a 6-3 vote to hold Bank Rate at 3.75%. The committee said it was balancing inflationary effects from an Iran-war energy shock against a lack of evidence that price pressures are becoming more persistent and economy-wide. Thiru said the minutes’ heightened inflation concerns substantially raise the probability of a November rate increase; ongoing US‑Iran hostilities have moved the risk from possibility to probability. He added that while policy could still remain unchanged this year, next month’s government budget will be a key consideration for the bank’s inflation assessment.