Australian Shares Fall After RBA Decision

The S&P/ASX 200 Index fell 0.47% to close at 7,293 on Tuesday, retreating further from seven-month highs after the Reserve Bank of Australia raised its policy rate by 25 basis points to 3.1%, taking borrowing costs to a level not seen in a decade.

The RBA has now lifted the cash rate for the eight consecutive month and said that it expects to tighten further to bring down inflation.

Australian shares also tracked losses on Wall Street overnight after better-than-expected US services activity data suggested the Federal Reserve could raise interest rates for longer.

Technology stocks led the decline, with sharp losses from Xero (-4%), Block Inc (-4.6%) and Brainchip Holdings (-5.6%).

Other index heavyweights also slumped, including Macquarie Group (-2.1%), Fortescue Metals (-1.6%) and Newcrest Mining (-2.3%).