In the coming week, financial markets globally will focus on several important central bank meetings, including those of the U.S. Federal Reserve (Fed), the Bank of England, and the Bank of Japan, along with inflation data from the UK and Japan, and activity data from the U.S. and China.

Additionally, central banks in countries such as Switzerland, Norway, Sweden, Turkey, and the Philippines will also hold interest rate decision meetings. Geopolitical developments in the Middle East, especially the Israeli attack on Iranian nuclear facilities, could further influence market sentiment and central bank rate decisions.

This week's highlights include:

1. U.S. Federal Reserve: Holding Steady but Rate Cut Expectations Persist
   The Federal Open Market Committee (FOMC) will meet in the middle of this week. Despite pressure from President Trump for rate cuts and a lower-than-expected consumer price index (CPI) report, it is widely expected that the Fed will maintain the federal funds rate. The main reason is that inflation remains above target (2.4%), and uncertainties regarding tariffs and their impact on prices are still key concerns for the Fed. However, the next action from the Fed is likely to be a rate cut, with expectations for a 50 basis point cut by the second half of 2025.
2. Bank of England: Likely to Maintain 4.25%, But Downward Bias Exists
   The Bank of England will convene its rate-setting meeting on Thursday, and the market largely expects the benchmark interest rate to remain at 4.25%. However, May PMI data indicates slow economic growth and easing inflation pressures, suggesting a clear inclination towards rate cuts. It is expected that the Bank will cut rates again in August and then further in November.
3. Bank of Japan: Facing Economic Challenges
   The Bank of Japan will also hold a monetary policy meeting, with expectations that its stance will remain unchanged until later this year. However, as economic trends deteriorate, the Bank faces greater challenges in maintaining its resolve to raise rates.
4. Key Economic Data from the U.S.
   On Tuesday, retail sales and industrial production data for May will be released, which are crucial indicators of consumer spending and manufacturing activity. May’s PMI indicators suggest significant growth in services activity, while manufacturing output has declined, indicating potential positive retail sales.
5. Chinese Economic Data: Insights into Trade Disruptions
   China's industrial production and retail sales data will come into focus as important indicators of the impacts of trade disruptions. Despite weak PMI data indicating difficulties in the manufacturing sector, industrial production data will be closely watched, while accelerated growth in service activity suggests potential improvement in retail sales.