Market Commentary - Foreign Markets
Australian markets end lower after RBA holds rate As on : 10-Dec-24  15:58

Australian stocks closed lower after the Reserve Bank of Australia kept interest rates on hold, as widely expected, with a dovish tilt.

The benchmark S&P/ASX 200 dipped 0.36 percent to 8,393 while the broader All Ordinaries index ended down 0.43 percent at 8,650.

Technology stocks and banks declined, offsetting gains in the mining and energy sectors. IAG shares fell 1.7 percent after the insurer said it would defend itself against a class action in the Victorian Supreme Court.

Australia central bank left its key interest rate unchanged for the ninth straight session on Tuesday but today's statement lifted hopes of an early interest rate cut.

The policy board of the Reserve Bank of Australia governed by Michele Bullock decided to retain the cash rate target at a 13-year high of 4.35 percent. The decision matched expectations.

The previous change in the interest rate was in November 2023, when it was lifted by 25 basis points to the highest level since late 2011.

The interest rate paid on Exchange Settlement balances was maintained at 4.25 percent.

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