It's a big week for central banks around the world, with a slew of rate moves on the table

A flurry of major central banks will hold monetary policy meetings this week, with investors bracing for interest rate moves in either direction.

The Federal Reserve's highly anticipated two-day meeting, which gets underway Tuesday, is poised to take center stage.

The U.S. central bank is widely expected to join others around the world in starting its own rate-cutting cycle. The only remaining question appears to be by how much the Fed will reduce rates.

Traders currently see a quarter-point cut as the most likely outcome, although as many as 41% anticipate a half-point move, according to the CME's FedWatch tool.

Elsewhere, Brazil's central bank is scheduled to hold its next policy meeting across Tuesday and Wednesday. The Bank of England, Norway's Norges Bank and South Africa's Reserve Bank will all follow on Thursday.

A busy week of central bank meetings will be rounded off when the Bank of Japan delivers its latest rate decision at the conclusion of its two-day meeting Friday.

"We're entering a cutting phase," John Bilton, global head of multi-asset strategy at J.P. Morgan Asset Management, told CNBC's "Squawk Box Europe" on Thursday.

Speaking ahead of the European Central Bank's most recent quarter-point rate cut, Bilton said the Fed was also set to lower interest rates by 25 basis points this week, with the Bank of England "likely getting in on the party" after the U.K. economy stagnated for a second consecutive month in July.

"We have all the ingredients for the beginning of a fairly extended cutting cycle but one that is probably not associated with a recession — and that's an unusual setup," Bilton said.

"It means that we get a lot of volatility to my mind in terms of price discovery around those who believe that actually