Business Recorder
Australian shares extended fall in afternoon trade on Tuesday, led by banks, after the central bank raised interest rates as was widely expected and said inflation would remain sticky as the conflict in the Middle East unleashed a global oil shock. The benchmark S&P/ASX 200 index fell 0.6% to 8,643 by 0439 GMT. The Reserve Bank of Australia (RBA) raised its cash rate by 25 basis points to 4.35%, marking its third rate hike this year, and unwinding all three rate reductions delivered in 2025. It also signalled it was well placed to respond to the economic fallout from the conflict in the Middle East. Markets had wagered on an 80% chance of a rate hike after inflation climbed to 4.6% in March, driven by higher fuel costs, while the closely watched core measure remained uncomfortably above the RBA’s 2%-3% target band. Financials fell 1.1%, with National Australia Bank , Commonwealth Bank of Australia and ANZ shedding between 0.5% and 1.1%. Westpac Banking Corp dropped 2.1% after the country’s second-largest mortgage lender reported a lower-than-expected first-half profit and warned that the Middle East conflict was pressuring customers through higher energy prices. Mining stocks also lost ground, with BHP, Rio Tinto down 0.8% and 0.6%, respectively. Gold miners lost 0.7%. Regis Resources fell as much as 7.1%, clocking its steepest intraday drop since late March, after the company unveiled plans to take over smaller peer Vault Minerals to create a A$10.7 billion ($7.66 billion)producer. Vault shares surged 6.4% to hit their highest in nearly a month. Across the Tasman Sea, New Zealand’s benchmark S&P/NZX 50 index closed 0.8% lower at 12,996.20.
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