The Bank of Japan, which faces a different set of challenges, will announce its latest rate manoeuvre on Friday.

Meanwhile, while there are no decisions from the Bank of England this week. Bank governed Andrew Bailey is set to give evidence in Parliament on the question in a session titled: "Bank of England: how is independence working?"

On the corporate front, Tesco and industrial rental equipment maker Ashtead Group announce results this week.

Ashtead shares briefly hit 12-month highs earlier this year, in the wake of the publication of their Q3 numbers, and the firm is well positioned to take advantage of the US government's new infrastructure investment program.

Tesco will deliver its first quarter results on Friday, where chair John Allan will step down following the company's annual general meeting.

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ARKETS in London closed lower on Friday as a stronger pound and uncertainty over the global economy weighed on investor sentiment. The FTSE 100 closed 0.5 per cent lower while the FTSE 250 finished the week 0.1 per cent lower.

Caution was the watchword in London at the end of last week, ahead of a big week for central banks.

After central banks in Canada and Australia hiked rates, all eyes will now be on the US Federal Reserve, which is set to pause its aggressive interest rate hike campaign on Wednesday.

However markets expect Jerome Powell (pictured) and co to continue hiking rates again in July.

Meanwhile the European Central Bank looks set to hike rates again by 25 basis points to 3.5 per cent on Thursday.

(c) 2023 City A.M., source Newspaper