The Reserve Bank of New Zealand (RBNZ) announces its policy decision on Wednesday, where a hike to 2.75% is likely a done deal as the economy continues to grapple with mounting price pressures.
New Zealand's annual inflation accelerated in the second quarter to a 2-1/2-year high on the back of a sharp rise in fuel prices, and with war in the Middle East still raging, energy costs are unlikely to abate anytime soon.
Investors see rates reaching 3.0% by December and 3.5% next year as the RBNZ shifts from outright stimulus to a more neutral policy stance.
Over in Ottawa, the Bank of Canada is also due to announce its rate decision on Wednesday. The central bank is seen keeping rates on hold now and well into next year, as price pressures remain largely contained although trade tensions with the U.S. add uncertainty to the economic outlook.
Euro zone August inflation is forecast to hit 3.3%, its highest in nearly three years, driven by elevated energy costs.
The data is due on Tuesday, and the European Central Bank will also be watching readings excluding volatile food and energy prices, forecast to be closer to its 2% inflation target, but still above it.
The ECB's big worry is that higher energy prices spill over into broader inflation.
Traders are convinced the ECB will raise rates at its September meeting. Tuesday's figure would have to be very low to change that, but it will shape longer-term expectations.
Markets price a further hike by early 2027, but sources told Reuters that policymakers will have little appetite to signal further tightening at September's meeting.
In other European Union news, Iceland holds a referendum on Saturday on restarting negotiations to join the bloc.
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