FX.co ★ Australian Shares Fall Ahead of RBA Decision

The S&P/ASX 200 index declined by 0.7% to settle at 8,836 on Tuesday, reversing gains made during the previous trading session. Investors exercised caution as they awaited the Reserve Bank of Australia’s decision on monetary policy, scheduled for later in the day. It is widely expected that the central bank will maintain the interest rate at 3.60%, as it weighs persistent inflationary challenges against a strong labor market. Alongside the policy decision, the RBA will release quarterly economic forecasts. Subsequently, Governor Michele Bullock will hold a press conference, during which market analysts will be attentive to any indications concerning future policy directions. The financial sector led the market downturn, highlighted by a 1.6% drop in Commonwealth Bank of Australia and a 0.6% decline in National Australia Bank. Additionally, the materials sector contributed to the benchmark’s decline, impacted by reduced iron ore prices. Specifically, Rio Tinto decreased by 2.2%, Fortescue Metals saw a 1.3% decline, and BHP Group fell by 0.8%.