The S&P/ASX 200 fell 0.9% to close at 8,814 on Tuesday, hitting its lowest level in over a month as market sentiment remained subdued amid the central bank’s latest policy decision and its warning of persistent inflationary pressures. The RBA kept its cash rate at 3.60% in a unanimous decision, cautioning that inflation may be more persistent than expected after both headline and trimmed mean readings exceeded forecasts. Meanwhile, the board downplayed a surprise rise in September unemployment, noting that the labor market remains “slightly tight.” Governor Bullock stated that the possibility of further rate cuts appears limited and that any monetary easing in this cycle may be smaller than in previous ones. Mining stocks were the biggest laggards amid lower iron ore prices, with Fortescue dropping 2.7%, Rio Tinto falling 2.6%, and BHP Group down 1.9%. Elsewhere, Novonix slumped 10.6% to a one-month low after Stellantis ended its offtake agreement with the battery materials producer.
