The Federal Reserve (Fed) and most of the world's central banks are expected to lower interest rates at the next meeting immediately after the United States (US) presidential election that will be held tomorrow.
Central banks responsible for more than a third of the global economy will set borrowing costs following the vote and cling to whatever certainty they can see about likely American economic policy for the next four years.
Vice President, Kamala Harris and former president, Donald Trump will clash on November 5 to see who will be the newest presidential candidate for the world giant and most economists see a tough competition for the two candidates.
Apart from the election, US policymakers have already indicated their intention to continue with more gradual rate cuts after a half-point reduction at last September's meeting.
Meanwhile, Fed Chairman Jerome Powell is likely to emphasize that the current situation calls for a less restrictive policy during his speech and his officials need to be careful of political repercussions.
Several central banks are now grappling with risks from slowing economic growth to inflation as they ponder the impact on global trade of Donald Trump's new tariffs.
