Toronto - Investors waiting this week will closely watch the release of bank earnings data and will focus on how institutions expect their behavior given the two major factors this year: rising interest rates and inflation.

Central banks in Canada and the United States are expected to start raising interest rates in March, so analysts will monitor any changes in expectations from Canadian banks regarding how they anticipate implementing the higher interest rates, according to analyst Mini Gruman at Scotiabank in a memo.

He says expenses will form another key trend to watch as wages and other costs rise in a competitive growth environment.

Darko Mihelic, an analyst at RBC, says that bank CEOs so far say inflation risks are manageable, but he will look for any change in tone given recent inflation data and the rising costs reported by U.S. banks in January.

Mihelic says that for the first quarter results, he expects to see an improvement in loan growth and a continued decline in credit loss provisions.

Royal Bank begins issuing earnings data on Thursday, followed by CIBC and National Bank on Friday, BMO and Scotiabank on March 1, then TD Bank on March 3.