However, the local stock market was stronger after the expected RBA decision in the afternoon.
Saxo Markets analyst Jessica Amir said the RBA had been too slow to raise rates and cast doubt on its new forecast that inflation will fall to 4% next year after hitting a peak of almost 8% this year.
“In our eyes, this is unrealistic as coal, gas and oil prices are sticky at higher levels supported by a lack of supply. Demand will also pick up ahead of the US/EU winter and pressure energy prices more,” said Amir.
Meanwhile, regional airline Rex rose 6% after announcing it would accelerate the rollout of several new Boeing 737s as revenue rose more than pre-pandemic levels in the first month of the new financial year.
Rex said revenue on domestic routes in July alone was almost double the June quarter, while revenue per flight was 7% higher on regional routes than in July 2019.
“We are particularly proud of our on-time performance and low cancellation rates,” said Rex Executive Chairman Lim Kim Hai.
Tweet of the day:
Quote of the Day: “It’s not a shock to anyone, but it will sting. Families will now have to make tougher decisions about how to balance the household budget in the face of other pressures like higher grocery prices, higher cars and the cost of other essentials,” Treasurer Jim Chalmers said after the RBA’s interest rate hike.
You may have missed it: ASX-listed private hospital operator Ramsay Healthcare has officially terminated its funding deal with health insurance giant Bupa. Ramsay gave notice of termination in early May, but the deal officially expired on Tuesday after a new deal could not be reached. Bupa patients can now face significant out-of-pocket costs at Ramsay hospitals.