The Federal Reserve, European Central Bank and Bank of England are due to announce interest-rate decisions this week, with investors closely watching for any sign of how policymakers see the balance between cooling inflation and slowing growth.

Markets expect the three central banks to keep a tight focus on price pressures after a long period of higher borrowing costs. Even as inflation has eased from its peaks in many major economies, policymakers remain cautious about moving too quickly and risking a rebound in prices.

Attention will also fall on the language officials use in their statements and news conferences. Traders will look for clues on whether rate cuts are nearing, or whether central banks believe they need to keep policy restrictive for longer to bring inflation fully under control.

The decisions come at a time when households and businesses are still feeling the effects of expensive credit. Any hint of a shift in tone could affect bond markets, currencies and equities across the U.S. and Europe in the days ahead.