The European Central Bank (ECB) and Bank of England (BoE) will announce their latest policy decision on Thursday.
The ECB has been under mounting pressure to address low inflation and high unemployment in the Eurozone.
ECB President Mario Draghi has said the current rate of inflation, at 0.8% , was well below the 2% target and remain low for a "protracted period of time".
Unemployment also remains at a 12%.
Last month Draghi hinted at the possibility of enacting greater measures, saying he was awaiting more comprehensive data in March before making a decision.
Economists are mixed on whether the ECB will take action.
"While the firmer-than-expected euro area February inflation data reduced the market expectation for ECB action at this meeting, our economists continue to expect them to announce further easing by cutting refi rate by 15bp to 0.10% and the deposit rate by 10bp to -0.10% on the back of growing risk of a very prolonged period of low inflation," according to Barclays.
"While we think this will be a very close call, a combination of refi rate cut and negative deposit rate would likely trigger a knee-jerk EUR selling, in our view."
However, analysts at Bank of America Merrill Lynch believe that the ECB is likely to hold fire until later meetings: "In our view, the ECB is not ready to fire a 'bazooka' in this week's meeting, despite very low inflation and rising deflation risks.
"[...] Looking ahead, we believe that the ECB is not worried about deflationary risks yet. However, the ECB might be pushed into action at the April meeting, or this summer, if inflation falls further," they said.
The BoE is expected to maintain its policy by keeping interest rates at 0.5% and asset purchases at £375bn when the central bank meets tomorrow.
Governor Mark Carney last month switched the Bank's forward guidance on interest rates.
Last year the BoE vowed to keep interest rates low until unemployment falls to 7% but a quicker-than-expected drop towards the threshold prompted Carney to change the guidance to include a wider range of indicators including spare capacity in the economy.
In the earnings session earlier on, Aggreko, Balfour Beatty and Genel Energy will be out with annual results.
Thursday March 6th
INTERIM DIVIDEND PAYMENT DATE
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Bloomberg Consumer Confidence (US) (14:45)
Continuing Claims (US) (13:30)
ECB Interest Rate (EU) (12:45)
Factory Orders (GER) (11:00)
Factory Orders (US) (15:00)
Goods Orders (US) (15:00)
Initial Jobless Claims (US) (13:30)
PMI Construction (GER) (08:30)
PMI Retail (GER) (09:10)
Productivity (US) (13:30)
Hellenic Telecom Industries SA ADS, X5 Retail Group NV GDR (Reg S)
F&C Global Smaller Companies
32Red, Advanced Medical Solutions Group, Aggreko, Aviva, Avocet Mining, Balfour Beatty, Cineworld Group, Cobham, Communisis, Dairy Farm International Holdings Ltd. (Singapore), Fisher (James) & Sons, Hellenic Telecom Industries SA ADS, Hongkong Land Holding Ltd. (Sing.Reg), Hunting, IMI, Inmarsat, Irish Continental Group Units, Jardine Matheson Holdings Ltd (Singapore Reg), London Mining, LSL Property Services, Management Consulting Group, Mandarin Oriental International (Singapore), OJSC Cherkizovo Group GDR (Reg S), Planet Payment Inc., Schroders, Schroders (Non-Voting), Spirax-Sarco Engineering, Unite Group, X5 Retail Group NV GDR (Reg S)
Betfair Group, Smith (DS)
Avesco Group, Geiger Counter Ltd., Jersey Electricity 'A' Shares, Local Shopping REIT, LPA Group, New City Energy Ltd NPV, Sage Group
UK ECONOMIC ANNOUNCEMENTS
BoE Interest Rate Decision (12:00)
New Car Registrations (09:30)
PMI Retail (EU) (09:00)