The Bank of England has practically abandoned its target of moving inflation down to 2 percent, saying it won't consider raising interest rates until unemployment falls below 7 percent, Karlsson writes. The move isn't likely to change much policy, but it is an explicit reminder that inflation rates have been above 3 percent since 2005.
Japanese bond yields have started to move up again, rising above the pre-'Abenomics' level to 0.91 percent, Karlsson writes, something that worries many Japanese officials. Private demand has collapsed as investors have increasingly started to believe that the Bank of Japan through its purchases will actually achieve its new stated inflation target of 2 percent, a slump in demand that some have called a "bond buyer's strike."
A pair of egrets sit on a one-horned Rhinoceros as it wades through monsoon flood waters at Pobitora Wildlife Sanctuary in Pobitora, Assam state, India, on Sunday. Assam is home to the world's largest population of the rare rhinos. Monsoon season in India begins in June and ends in October.