Policy Pause Expected Across Major Central Banks

• Markets have opened the week in a holding pattern after President Trump called off the latest round of in-person talks, leaving little clarity on where negotiations head next.
• From Iran’s side, there are signs a staged approach is being considered, focusing first on the Strait of Hormuz, before turning to broader nuclear discussions.
• In rates, the lift in oil prices has fed through, with US yields edging higher and a mild steepening in the curve — 2-years around 3.80% (+2–3bps) and 10-years near 4.34% (+4bps).
• Against the backdrop, major central banks are expected to remain on hold this week, including the BoJ, BoE, Fed and ECB, as policymakers assess both inflation and geopolitical risks.
• Domestically, attention turns to Australian CPI tomorrow, which will be the key local data point shaping expectations near term.