Market Caution Prevails Amid Diverging Central Bank Paths and Inflation Concerns

Investors are cautious as they await the upcoming central bank meetings. The Fed is expected to deliver a final 25-basis-point rate increase in May and then hold rates steady for the rest of the year, while the Bank of England is likely to stay on its hawkish path due to hot British inflation. New Zealand's consumer inflation came in below expectations but remained near historic highs, reinforcing bets of another interest rate hike in May. Australia's central bank will get a new specialist board to manage monetary policy. Tesla's shares slid after posting its lowest quarterly gross margin in two years.