In its latest military decision, the German Ministry of Defense announced plans to withdraw two warships from the Red Sea region.

BMI expects Bank Indonesia to raise rates by a further 50 bps to 6.25% by year-end as policy concerns and renewed US–Iran tensions weigh on the Indonesian rupiah. The agency says the currency is likely to remain weak despite recent intervention and policy tightening. Rising oil prices could boost Indonesia’s import bill and heighten fiscal risks, while persistent governance and policy uncertainty may continue to sap investor sentiment; BMI adds that BI’s growth-supportive stance should limit the scope for further hikes.

US Dollar: 1. The White House is reportedly considering using the SVB report to dismiss Federal Reserve Governor Barr. 2. Trump: Expects a federal government shutdown in September. 3. Indonesian Central Bank Governor: Expects the Federal Reserve to raise interest rates earlier than planned in the fourth quarter of 2026. Euro: 1. The European Central Bank will announce its interest rate decision tonight. The market widely expects no change at this meeting, with another rate hike in September. Pound Sterling: 1. It is reported that Burnham has withdrawn his proposal to raise the UK personal income tax threshold. Japanese Yen: 1. A weaker yen exacerbates inflation risks; the Bank of Japan remains open to accelerating the pace of interest rate hikes. 2. Deutsche Bank: Japan's policy focus may shift from "protecting the yen" to "controlling yields." 3. The yen's trade-weighted index has fallen, indicating a broad weakening. 4. Japanese Finance Minister Satsuki Katayama: Prepared to take decisive foreign exchange action if necessary. 5. Reuters poll: 86% of economists expect the Bank of Japan to raise interest rates by 25 basis points to 1.25% by the end of the fourth quarter, slightly higher than the 79% in the June survey. 6. Reuters poll: 70% of economists expect the Bank of Japan to raise interest rates to at least 1.50% in the second quarter of 2027; 51% of respondents believe 1.50% is the terminal rate. Korean Won: 1. South Korean Presidential Office: Believes the US may impose additional tariffs under Section 301. Other: 1. Indonesian Central Bank Governor: Expects global economic growth to remain at 3.0% in 2026. 2. Indonesian Central Bank maintains interest rate at 5.75% and will continue to take measures to ensure the stability of the Indonesian Rupiah. 3. Ghana's benchmark interest rate remains unchanged at 14%. 4. World Bank warns that continued conflict between the US and Iran could reduce global economic growth to 1.3%. 5. Australia's employment surged by 76,300 in June, far exceeding market expectations, while the unemployment rate remained stable at 4.4%.