(Reuters) -Britain's FTSE 100 was on course for its longest weekly losing streak since March 2020 on Friday, as investors grappled with uncertainty around the outlook for interest rates and political turmoil in Europe.

The blue-chip FTSE 100 index slipped 0.2%. The benchmark was headed for a fifth straight weekly decline, falling 1.2%.

The knock-on effects from French President Emmanuel Macron's gamble to call snap elections, a hawkish projection from the U.S. Federal Reserve and weaker-than-expected UK GDP data for April weighed on the British markets this week.

Investors will now shift focus to domestic inflation report and the Bank of England's (BoE) monetary policy meeting - the last before the July 4 election - due next week.

"Whether there is political pressure or not, I don't think the Bank of England will cut rates in June because service sector inflation and wage growth are still too sticky for the central bank's liking," said Fiona Cincotta, senior market analyst at City Index.

"The BoE is updating their forecasts, so obviously there will be a lot of attention on inflation expectation and growth as well, after growth stalled in April."

The British public's expectations for inflation cooled last month, a Bank of England survey showed, and the highest proportion since the global financial crisis thought it would be best for the economy if interest rates fell.

The FTSE 250 midcap index slipped 0.1% and was set for a third straight week of losses.

Among single stocks, Tesco rose 1.6% after Britain's biggest supermarket group reported a 4.6% rise in underlying quarterly sales in its home market and reiterated its forecast.

Crest Nicholson jumped 7.6% after the homebuilder said it rejected a 650 million pound ($828.04 million) revised unsolicited proposal from rival Bellway, saying the deal "significantly undervalued" the group.

Bellway's shares slid 3.1%.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Sonia Cheema and Eileen Soreng)

By Sruthi Shankar