0531 GMT - Despite upside risks to inflation, both the Federal Reserve and the European Central Bank are likely to keep interest rates on hold this year, Indosuez Wealth Management's Gregory Steiner and Benedicte Kukla say in a note. "Our base case is that the ECB will stand pat; however, for this to hold, the Middle East situation will need to improve from here," global head of asset allocation Steiner and chief strategist Kukla say. They continue to view the energy shock as significant but ultimately temporary. For the ECB, financial conditions in the eurozone have tightened since the June meeting, keeping policymakers on a hawkish hold, they say. The ECB raised interest rates in June.