The Federal Reserve is expected to announce a further tapering of quantitative easing on Wednesday when the central bank wraps up its policy meeting.
Analysts predict the Fed will cut $10bn off its monthly bond purchase programme and keep interest rates at 0.25%.
However, following Tuesday's release of the latest consumer price inflation data, which showed prices rose more than forecast in the US, some analysts now believe the Fed may consider raising interest rates sooner than it had been expecting.
US consumer prices rose by 0.4% month-on-month and 2.1% year-on-year in May, surpassing estimates for a gain of 0.2% and 1.9% respectively.
Core prices, which exclude both energy and food, also rose more quickly than forecast, rising by 0.3% month-on-month and 2% year-on-year.
Paul Dales, Senior US economist at Capital Economics said: "With core CPI inflation rising to 2% in May, from 1.8% in April, the Fed will have to acknowledge in tomorrow's policy statement that price pressures are building. The chances that it will hike interest rates before the middle of next year are increasing."
In the UK, the Bank of England (BoE) will release minutes from its policy meeting earlier this month when the central bank decided to keep interest rates at 0.5% and asset purchases at £375bn.
However, in his Mansion House speech last Thursday BoE Governor Mark Carney clearly suggested that an increase in interest rates was a possibility as soon this year given the pick-up in the economy.
Even so, he added that "we expect that eventual increases in Bank rate will be gradual and limited."
Over the past couple of days, many economists have been bringing forward their forecasts for the expected first increase in Bank Rate. However, their estimates of how high it will rise over the next few years have remained unchanged.
That is the case of IHS Global Insight, which now sees the MPC raising Bank Rate for the first time in this cycle come February, and perhaps even as soon as November. Nevertheless, IHS only expects the Bank of England´s main policy to reach 1.25% by the end of 2015 and 2% by the end of 2016.
Wednesday June 18th
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INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Balance of Payments (US) (13:30)
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Current Account (US) (13:30)
FOMC Interest Rate (US) (19:00)
MBA Mortgage Applications (US) (12:00)
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BoE Interest Rate Minutes (09:30)
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