SYDNEY : Asian share markets stabilised somewhat on Tuesday after steep losses in the past 24 hours, while the U.S dollar remained elevated as investors considered the prospects interest rates would remain higher for longer in many developed economies.
The central bank is likely to lift the official cash rate by another 25 basis points to 3.35 per cent, according to economists polled by Reuters. The decision will be announced at 0330 GMT. "It's a quiet week for economic data globally and when that is the case uncertainty over interest rates is the dominant theme among investors."
The repricing of higher rates began after strong U.S jobs growth in January, with employment rising 517,000, more than double economists expectations. The unemployment rate hit 3.4 per cent, the lowest in more than 53 years. "The market has repriced to expect that the Fed Funds rate will peak just above 5 per cent and it now only anticipates very limited rate cuts, just one of 25 basis points by the end of this year," ANZ economists wrote.