This week is expected to see the resumption of interest rate cuts by the US Federal Reserve following an 11 month pause as signs of a weakening US economy and the looming threat of war in Iraq are seen prompting the Fed's move.
However cuts by central banks in Europe and the UK are more problematic with a Mexican stand-off between European politicians and the European Central Bank likely to result in a no change at Thursday's ECB meeting. The Bank of England is also likely to keep rates on hold at 4 per cent this week.
Source: The Financial Times