Sri Lanka’s central bank is expected to hold interest rates for a second straight meeting on Wednesday as it attempts to maintain monetary stability in the shadow of a dragging financial crisis and counter simmering political tensions.
The dollar eased slightly against a basket of currencies on Monday while dropping sharply versus the yen as investors focused on U.S. President Joe Biden’s decision to end his re-election campaign and the next moves from the Federal Reserve and the Bank of Japan.
The U.S. Federal Reserve is due to review policy next on July 30-31, when investors expect it to keep rates unchanged. But they will look for further evidence that a cut will happen at the September meeting.
Bitcoin and broader crypto markets were now grappling with increased uncertainty over the 2024 elections, after Biden endorsed Vice President Kamala Harris as the Democratic presidential nominee. While Harris will still need to be officially nominated during the Democratic National Convention in August, a slew of top Democrats endorsed her nomination.
The European Central Bank is expected to cut interest rates for a second time in September, but so far banks’ earnings have proved surprisingly robust and their shares have continued higher.
