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(Sharecast News) - There are no FTSE 350 corporate releases scheduled for release on Tuesday, but investors will turn their attention to the latest policy announcements from the Bank of Japan and the Reserve Bank of Australia.
The BoJ is widely expected to lift its key policy rate by 25 basis points to 1.00%, taking it to its highest level since 1995.
"Hawkish voices on the policy board have become more prominent and, with real wage growth back in positive territory and the economy holding up, we think the Bank of Japan is now ready to move," said Danske Bank.
Meanwhile, the RBA is expected to hold the cash rate steady at 4.35%.
TD Securities said: "More important for markets is whether the Bank's messaging signals the cash rate on a prolonged hold. The market would interpret such a message as dovish, and this is where the risks lie.
"However, we doubt the RBA's models signal an impending recession and with trimmed mean inflation remaining elevated for some time, any discussion of cuts to the cash rate is pre-mature."
ING expects the RBA to stay on hold as recent inflation data surprised to the downside.
"Moreover, the RBA is signalling that policy is in restrictive territory, but not locked into a oneway tightening path," it said. "A noticeable slowdown in growth at recent meetings and a clear upward drift in unemployment suggest the Bank is becoming more alert to downside risks."
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