Australian shares loose out after RBA cuts rate after four years

Australian markets slipped for a second straight session as the Reserve Bank struck a note of caution after delivering its first rate cut in four years.

The benchmark S&P/ASX 200 dropped 0.66 percent to 8,481, dragged down by banks and energy stocks. The broader All Ordinaries index ended down 0.63 percent at 8,756.70.

The Reserve Bank of Australia lowered its benchmark rate for the first time since 2020 as upside risks to inflation eased but policymakers remained cautious about further easing.

The policy board of the RBA governed by Michele Bullock decided to reduce the cash rate target by 25 basis points to 4.10 percent.

This was the first reduction since November 2020 and follows 13 rate hikes since May 2022.

Powered by Capital Market - Live News