Having raised Bank Rate 12 straight times by a cumulative 415 basis points, the Bank of England is expected to raise it another 25 basis points to 4.50 percent at its May meeting as consumer inflation remains elevated just over 10 percent, well above the bank's 2 percent target. There are outside expectations for no change.

At its last meeting ending on March 22, the bank's Monetary Policy Committee voted by a majority of 72 to increase the policy rate by 25 basis points to 4.25 percent. Two members preferred to maintain the rate at 4 percent. At the time, the bank expected CPI inflation to fall significantly in the April-June quarter but services CPI prices were expected to remain broadly unchanged in the near term.

Among US data, initial jobless claims for the May 6 week are expected to come in at 245,000 versus 242,000 in the prior week.

After falling 0.5 percent in March, producer prices in April are expected to rise 0.3 percent on the month. The annual rate in April is seen at 2.5 percent and down slightly from March's 2.7 percent. April's ex-food ex-energy rate is seen at 0.2 percent on the month and 3.3 percent on the year versus March's monthly 0.1 percent decline and plus 3.4 percent yearly rate.

Federal Reserve Board Governor Christopher Waller will speak on Financial Stability and Climate Change before the Current Challenges in Economics & Finance conference organized by the Federal Reserve Bank of St. Louis, Banco de Espana, and IE University at 10:15 a.m. EDT (1415 GMT).

Market Focus details key factors in the coming day that will impact the economic outlook and the financial markets. These include central bank events, economic indicators, policymaker speeches as well as expected political and corporate developments.

Keeping up-to-date with event schedules and the economic calendar is key to understanding the global financial system. Econoday's Market Focus allows investors and policymakers to carefully track what will be making news and moving the financial markets in the coming day.