(Reuters) - Global equity funds had their biggest weekly inflows in more than three months in the seven days to June 26, driven by expectations of moderating U.S. inflation levels that could lead the Federal Reserve to announce interest rate cuts.

Investors purchased global equity funds worth a net $21.65 billion during the week, the largest weekly net purchase since March 13, according to LSEG data.

Last week, the Swiss National Bank implemented its second interest rate cut of the year, while some Bank of England policymakers signalled a potential early rate reduction.

Meanwhile, weaker-than-expected U.S. economic reports, including disappointing housing starts and lacklustre retail sales data, have bolstered investor expectations for a Fed rate cut in September.

The U.S. central bank's key inflation measure, the personal consumption expenditures (PCE) index, is set to release at 1230 GMT. If it slows to 2.6% as expected, it could signal upcoming rate cuts.

U.S. equity funds experienced a substantial $16.37 billion in net purchases, marking the largest weekly inflow in a year. Meanwhile, Asian and European funds attracted $3.28 billion and $1.36 billion in inflows, respectively.

In sectoral funds, the technology sector garnered a net $1.1 billion, maintaining investor interest for the third consecutive week. Industrials received $488 million, while healthcare funds saw outflows of about $608 million.

Global bond funds recorded inflows for the 27th consecutive week, totalling about $5.24 billion on a net basis. Demand remained strong for global government, corporate and dollar-denominated short-term bond funds, which attracted inflows of about $1.73 billion, $1.07 billion and $1.05 billion, respectively.

Money market funds, meanwhile, faced $37.98 billion worth of net selling after three straight weeks of inflows.

In the commodities segment, precious metal funds attracted a net $343 million, significantly reversing the $490 billion worth of outflows a week earlier. Meanwhile, net selling in energy funds eased to a three-week low of $3 million.

Data encompassing 29,596 emerging market funds showed bond funds drew $973 million, the first weekly inflow in three. Equity funds, however, remained out of favour for a third successive week, losing about $655 million in outflows.