Major global central banks are set to hold interest rates steady this week, but are expected to diverge on monetary policy once the fallout from the Middle East conflict becomes clearer.

Traders are betting that the Federal Reserve, European Central Bank, Bank of Japan, and Bank of England will all maintain rates at current levels. The ECB and BOJ are seen as more hawkish, however, with hikes due later in the year or in 2027, whereas markets are pricing in a 35% chance of a Fed rate cut by year-end.

This week’s patience offers some respite for developing nations, which often borrow in dollars or euros to court foreign investors, leaving them vulnerable to richer countries tightening monetary policy.