Central Banks Maintain 'Wait-and-See' Stance Amid Inflation Concerns

Central banks are largely in a 'wait-and-see' mode. The Federal Reserve held interest rates steady, with Chair Kevin Warsh reiterating the commitment to controlling inflation, as core PCE came in at 3.7%. Eurozone inflation rose to 2.9% in July, influenced by renewed conflict in the Middle East and higher energy costs. The Bank of England also kept interest rates on hold, though a growing number of policymakers voted for a hike due to ongoing uncertainty over inflationary impacts. The Bank of Japan left rates unchanged but warned that core inflation is likely to exceed its 2% target from September, while China's manufacturing PMI decreased to 49.2 in July from 50.3 in June.