FX.co ★ Australian Shares Fall After RBA Decision

The S&P/ASX 200 declined by 0.5% to settle at 8,586 on Tuesday, marking a continuation of the downturn experienced in the prior session. This downturn reflected the cautious market sentiment that persisted following the Reserve Bank of Australia's (RBA) recent policy announcement. In its final meeting of the year, the RBA opted to maintain the cash rate at a steady 3.60% for the third meeting in a row, extending the pause in rate adjustments since the last reduction in July. The policy decision was unanimously supported by the RBA, with policymakers highlighting the potential persistence of inflationary pressures and the ongoing tightness in the labor market. Governor Michele Bullock indicated a hawkish approach, emphasizing that the central bank is inclined to either maintain current rates or potentially increase them in the upcoming year. A number of major stocks performed poorly, including Commonwealth Bank of Australia (-0.6%), BHP Group (-0.4%), Newmont Corporation (-0.8%), Westpac Banking Corporation (-0.6%), and CSL Limited (-2%).