All eyes will be on the Federal Open Market Committee on Tuesday to see if it does announce a third round of asset purchases.
What with the global market uncertainty and former Fed officials of the calibre of Don Kohn suggesting QE3 may be the wisest course of action, the chances of the US central bank doing so have risen markedly since the idea was first mooted by the FOMC in its June minutes. The statement is due out 19.15 London time.
BoE inflation report
The Bank of England will hold its quarterly Inflation Report press conference on Wednesday, beginning at 10.30. Again, investors will be on the lookout to see what the Bank’s thinking is on the threshold for another round of QE.