Bank of England rate-setters are tipped to announce a further 25 basis points rise in the cost of borrowing despite the surprise softening of inflation.

Analysts believe that after Thursday’s decision there will be one more rise before the end of the year, though the Bank is coming under pressure to ease off in order not to push the economy into recession.

The decision comes a few days after the Bank appointed former US Federal Reserve chairman Ben Bernanke to lead a review into its forecasting.

Whisky owner Diageo heads a busy week of results for companies with head offices or key operations in Scotland. The company, which owns a range of top brands including Johnnie Walker and Guinness, reports for the first time since the death of its chief executive Ivan Menezes last month.

Its shares have risen strongly over the last decade though they are down 11.5% year-on-year.

BP’s second-quarter results, also on Tuesday, are likely to echo Shell’s expectations of slower profits growth. Shareholders and climate activists will be keen to hear an update on the company’s renewables plans.

DIARY

Monday 31 July

• First-half results from Pearson and Spectris
• Chinese purchasing managers’ indices (PMIs) for manufacturing and services industries.
• Nationwide UK house price index
• EU inflation figures

Tuesday 1 August

• Full-year results from Diageo
• First-half results from BP, HSBC, Fresnillo, Greggs, Robert Walters, Keller, Weir and Travis Perkins
• UK British Retail Consortium shop price index

Wednesday 2 August

• First-half results from BAE Systems, Haleon, Taylor Wimpey, Smurfit Kappa
• Quarterly results from Endeavour Mining and Virgin Money UK

Thursday 3 August

• First-half results from London Stock Exchange, Smith & Nephew, Rolls-Royce, Serco, Hikma Pharmaceuticals, Shaftesbury Capital and Morgan Sindall 
• Trading statements from Next, Wizz Air and Pets at Home
• Interest rate decision from the Bank of England
• US factory orders
• US weekly initial unemployment claims

Friday 4 August

• First-half results from Mondi, WPP and Morgan Advanced Materials
• UK construction industry purchasing managers’ index (PMI)