Deutsche Bank strategist Sanjay Raja noted that the UK’s May inflation rate came in below expectations at 2.8%, easing pressure from the recent Iran conflict shock. This softer inflation figure suggests that market impacts from geopolitical tensions may be less severe than initially feared, providing the Bank of England with more room to pause and evaluate its next monetary policy moves.

For the crypto space, such macroeconomic signals are important as they influence investor sentiment and risk appetite. A more cautious stance from central banks, supported by stable inflation data, could foster a more stable environment for digital assets and DeFi platforms, especially in regions like the UK where policy decisions often ripple across global markets.

Raja also mentioned that despite rising energy prices, inflation pressures appear to be moderating, which could delay aggressive rate hikes and support a broader risk-on sentiment in markets, including crypto.