How will the ASX 200, Australian dollar react?

Any hawkish signs from the RBA are likely to further batter Australian stocks, with regional markets already nursing steep losses from a broader risk-off sentiment.

The ASX 200 fell sharply in recent sessions after hitting record highs as recently as last week.

High-for-longer interest rates bode poorly for most Australian businesses, especially given that they are already grappling with weak overseas demand.