The Bank of England and US Federal Reserve have yet another thing to think about ahead of their respective interest rate decisions later this week as Russia pulls out of a Ukraine grain deal.

Wheat prices are soaring off the back of the move on fears the breadbasket of Europe might be squeezed and this only adds to an existing set of inflationary pressures. Commodity prices, which had receded in relevance somewhat since the summer, are now back at the top of the agenda.

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AJ Bell investment director Russ Mould said,  “It all adds up to an increasingly difficult tightrope for monetary policy makers on both sides of the Atlantic to walk as they look to bring inflation under control without doing too much economic damage in the process.

“Reports suggesting a windfall tax on the banking sector is unlikely helped give shares in the likes of NatWest, Lloyds and Barclays a lift on Monday.

“The current backdrop for the banks contains both the sunny rays of higher rates and the positive implications for profitability alongside some very dark storm clouds reflected in the big provisions they took to guard against a rise in bad debts in their recent results.”