The U.S. Federal Reserve is approaching its key decision on whether to cut interest rates by 25 or 50 basis points. While market expectations have shifted, now implying a 59% chance of a larger 50 bps cut, most analysts are predicting a 25 bps reduction. The move is being closely watched, especially with the next meeting set for November, just after the U.S. presidential election, adding potential political implications.

Globally, the Bank of England is expected to hold its rate at 5.0%, while inflation data could influence further moves. The Bank of Japan is expected to maintain its current policy but may hint at future tightening. Economic concerns persist in China, where recent data reinforced the need for more stimulus, adding to the cautious sentiment in global markets.