Australia markets gain modestly after RBA holds rate

Australian markets eked out modest gains after the Reserve Bank of Australia kept interest rates steady but warned the economy remained overheated.

The benchmark S&P/ASX 200 edged up 0.41 percent to 7,680.60 after its worst two-day sell-off since the coronavirus pandemic. The broader All Ordinaries index gained 0.39 percent to close at 7,890.10.

Consumer discretionary stocks performed well while energy stocks suffered heavy losses.

Australia's central bank left its interest rate unchanged at a 12-year high for the sixth consecutive meeting and damped market expectations for a near term rate cut as it emphasized the need to keep the policy sufficiently restrictive to bring inflation to the target.

As widely expected, the policy board of the Reserve Bank of Australia headed by Michele Bullock decided to hold the cash rate target at 4.35 percent.

Policymakers observed that the economic outlook is uncertain and recent data have demonstrated that the process of returning inflation to target has been slow and bumpy.

Powered by Capital Market - Live News