The S&P/ASX 200 fell 0.5% to close at 8,586 on Tuesday, extending losses from the previous session as market sentiment remained subdued following the Reserve Bank of Australia’s latest policy decision. At its final meeting of the year, the RBA left the cash rate unchanged at 3.60% for a third consecutive meeting, prolonging the pause that began after the last reduction in July. The decision was unanimous, with policymakers warning that inflationary pressures may prove persistent and noting that the labor market remains tight. Governor Michele Bullock also signaled a hawkish stance, stating that the central bank is more inclined to keep rates on hold or potentially raise them next year. Several heavyweight stocks underperformed, including Commonwealth Bank of Australia (-0.6%), BHP Group (-0.4%), Newmont Corporation (-0.8%), Westpac Banking Corporation (-0.6%), and CSL Limited (-2%).
