The Bank of England (BoE) and European Central Bank (ECB) announce their interest rate decisions on Thursday.
The release of upbeat UK economic data on Wednesday set the stage for the BoE's Monetary Policy Committee meeting which kicked off on the same day.
Markit/CIPS UK purchasing managers' index showed the service sector rose to 60.5 in August from 60.2 in July, above the 50 reading that signals expansion and exceeding forecasts for a reading of 59.
When the central bank wraps up its two-day meeting on Thursday, it is expected to keep rates at record low level of 0.5% and asset purchases unchanged.
"Whereas we expect the US Fed to start tapering its asset purchases this month and to begin raising interest rates in 2015, we think the Bank of England could keep rates on hold until 2017 and may even resume quantitative easing in the meantime," according to a note from Capital Economics.
Governor Mark Carney last week said that the bank would consider more stimulus if UK economic conditions tightened and threatened recovery.
Last month he made his forward guidance vow to keep interest rates at their record low.
Money markets have, however, moved in the opposite direction, with traders bringing forward their expected date for rate rises to mid-2015.
The ECB is also expected to hold its interest rate at a record low of 0.5%, following a report showing the euro area's second quarter gross domestic product rose 0.3% from the previous quarter and another report revealing expansion in the Eurozone's services sector in August.
President Mario Draghi will deliver his monthly press conference on forward guidance, two months after he surprisingly stated that the ECB expects key interest rates to remain at present or lower levels for an extended period of time.
Draghi is likely to express his optimism around the recovery, according to ETX Capital Market Strategist Ishaq Siddiqi.
"Draghi is also likely to indicate that the ECB has no intention of digging into its magic tool box to stimulate the economy at the moment and will most likely be pressed by the media about perhaps providing some clear thresholds on the central bank's most recent forward guidance framework," he said.
Thursday September 5th
CPL Resources, Go-Ahead Group, Monitise
Fyffes, Mail.ru Group Ltd GDR (Reg S)
Betfair Group, Dixons Retail
INTERIM DIVIDEND PAYMENT DATE
Anglo American, Glencore Xstrata, Inchcape, Informa, Law Debenture Corp., Rio Tinto
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
G-20 St.Petersburg Meeting
ECB interest rate announcement (EZ) (12:45)
ECB press conference (EZ) (13:30)
ADP private payrolls report (US) (12:15)
Non-farm productivity (US) (13:30)
Unit labour costs (US) (13:30)
Initial jobless claims (US) (13:30)
ISM non-manufacturing index (US) (15:00)
Factory orders (US) (15:00)
German factory orders (EU) (11:00)
French Q2 ILO unemployment rate (EU) (07:30)
President Minneapolis Fed (US) (10:00)
Bank of Japan monetary policy meeting
Equatorial Palm Oil
Centaur Media, Dunelm Group
OJSC Megafon GDR (Reg S)
ACM Shipping Group, Betfair Group, Carclo, Carpetright, Dart Group, Dixons Retail, Independent News & Media
Ortac Resources Ltd. (DI)
FINAL DIVIDEND PAYMENT DATE
UK ECONOMIC ANNOUNCEMENTS
BoE bank rate decision (12:00)
BoE asset purchase decision (12:00)