Central banks across Europe and Asia are holding steady amid energy shocks and geopolitical tensions. The European Central Bank decided to keep its deposit facility at 2.25%, main refinancing at 2.40%, and marginal lending at 2.65%, signaling a data-driven approach to inflation aiming for 2% in the medium term and readiness to adjust instruments if needed. In Sri Lanka, the CBSL kept the Overnight Policy Rate at 8.75%, citing inflation near 6.8% and external pressures from Middle East tensions, with a view to inflation stabilizing around 5% later in the year. In Pakistan, market polls show 97% expect the SBP to hold at 11.5% at the July 27 MPC, though opinions are divided on end-2026 trajectory amid geopolitical risk and oil-price swings, with some expecting cuts later. Traders noted bond yields and money-market rates fluctuated as oil prices rebounded and geopolitical tensions influenced rate-cut expectations. Overall, policymakers emphasize data dependence and the need to shield inflation while supporting growth in a volatile global environment.