Markets are expecting another rise in US interest rates as the Federal Open Market Committee (FOMC) began its third meeting of the year today.
The FOMC, the United States' Federal Reserve's rate-setting panel, is expected to announce a quarter-percentage point increase to 3 per cent, the eighth successive rise.
With a rate rise seen as likely, financial market interest hinges on officials' assessment of whether they can keep raising rates at a gradual pace and whether risks remain balanced between slower growth and inflation.
Most guess the Fed will keep the "measured" language adopted last year in its policy statement, especially since minutes from the March meeting make clear it does not feel bound to small, quarter-point moves if bigger ones are warranted.
The benchmark rate stood at a 1958 low of 1 per cent before the Fed began raising it in June, adding quarter-point hikes at every FOMC meeting since.
At their last gathering on March 22nd, policy-makers cited rising inflationary pressure and a heightened ability for companies to raise prices. Since then, there have been signs that high energy costs are weighing on economic activity.