ASX 200 Declines Amid RBA Rate Hold and Inflation Concerns
ASX 200 Declines Amid RBA Rate Hold and Inflation Concerns
1
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
The Australian stock market witnessed a downturn on Tuesday as the Reserve Bank of Australia (RBA) opted to leave interest rates unchanged, while cautioning about the potential for persistent inflation beyond the preferred range.
The ASX 200 dropped by 81.1 points, or 0.91%, closing at 8813.7.
Meanwhile, the All Ordinaries index similarly decreased by 84.3 points, or 0.92%, settling at 9098.2.
Initially, the market responded positively at 2:30 pm following the RBA's decision to maintain the cash rate at 3.6%. However, the sentiment shifted negatively as RBA Governor Michele Bullock addressed the media, noting the risk of inflation possibly exceeding the central bank's target of 2-3% for an extended period. Bullock reiterated the central bank's stance, explaining that while monetary policy remains somewhat tight, technical forecasts suggest only a gradual fall in inflation.
Kyle Rodda, a senior analyst at Capital.com, emphasised that the RBA is aware of the inflationary pressures possibly persisting longer than anticipated. As a result, market expectations for further rate reductions diminished, with traders adjusting to the RBA's projections which hint at potential rate cuts mainly due to technical considerations.
The ASX downfall encompassed almost all of its sectors, with utilities experiencing the steepest decline of 2.78%. Companies such as Origin Energy and AGL Energy saw their shares decrease by 3.8% and 3.73%, respectively. Mining shares also suffered, with BHP slipping 1.91% and Rio Tinto down 2.59%.
In the financial sector, results were mixed as Westpac saw a rise of 1.51%, whereas other major banks like Commonwealth Bank and NAB recorded losses. The real estate sector, sensitive to interest rate changes, fell 1.18% as investors adjusted to the unchanged rate stance.
Globally, the scenario wasn't much different; Wall Street exhibited mixed results, influenced by its own set of economic factors. On Monday night, the Dow Jones Industrial Average fell by 226 points, while the S&P 500 and Nasdaq indices managed small gains.
On the corporate front, City Chic Collective reported promising sales results, propelling its stock price by 8.75%. Conversely, G8 Education experienced a significant drop of 13.04% following news of declining occupancy rates. Among other notable movements, DroneShield surged 8.6%, marking it as the best performer on the ASX200, while Boss Energy saw a 5.9% decline.
The Australian dollar remains at US65.1 cents, reflecting ongoing currency market dynamics amidst the local and global economic developments.
Published:Tuesday, 4th Nov 2025 Source: Paige Estritori
Please Note: If this information affects you, seek advice from a licensed professional.
Australia's leading banks-Commonwealth Bank of Australia (CBA), Westpac, National Australia Bank (NAB), and ANZ-are adjusting their mortgage strategies to reduce dependence on mortgage brokers. This move comes as profit margins are squeezed by lower interest rates, rising operational costs, and intensified market competition. - read more
On November 3, 2025, Westpac Banking Corporation announced an agreement to sell its RAMS mortgage portfolio, valued at A$21.4 billion, to a consortium comprising Pepper Money, investment firm KKR, and asset manager PIMCO. The sale is at a slight premium to the gross loan value of the portfolio to be transferred at completion. However, Westpac anticipates incurring a loss on the sale after accounting for transaction costs and other financial adjustments. - read more
Commonwealth Bank of Australia (CBA), the nation's largest bank by market value, reported a slight increase in first-quarter cash profit, driven by strong growth in home loans and household deposits. The bank achieved an unaudited cash profit of approximately A$2.6 billion, a 1% rise from the previous two-quarter average and 2% higher than the same period last year. - read more
The Boating Industry Association Ltd (BIA) has recently called upon all levels of Australian government to provide strategic support to the nation's marine manufacturing and recreational boating sector. This appeal comes in response to a significant skills shortage that poses a threat to the industry's economic potential. - read more
The Sydney International On-Water Boat Show is set to make a grand return from 13 to 16 November 2025 at Darling Harbour. This four-day event promises to be a highlight for boating enthusiasts and industry professionals alike, showcasing Australia's vibrant marine lifestyle. - read more
A credit score is a numerical representation of your creditworthiness. It is calculated based on your credit history, which includes factors like your payment history, the amount of debt you have, and the length of your credit history. - read more
If you’re thinking about buying a new caravan, then the chances are you’re excited about all the adventures you’re going to have with your family in tow. You’re also probably itching to start planning some great getaways, and of course, you want to get the best deal you can on the caravan itself. Perhaps these tips help you on the journey. - read more
Australia's love affair with the open road is a well-documented part of the national psyche; caravaning is more than just a means of travel—it's a lifestyle choice embraced by many. The lure of vast landscapes and the freedom to explore at your own pace has made owning a caravan a treasured goal for adventurers across the country. - read more
Australia is synonymous with sprawling landscapes and the spirit of adventure. With such an irresistible call to explore the great outdoors, it's no surprise that the popularity of caravanning has surged amongst wanderlust-filled Aussies. The freedom to hit the open road with the comforts of home tagging along in a caravan is an unmatched experience. - read more
Protecting your caravan investment is vital for any caravan owner. Unlike regular vehicles, caravans often represent a significant financial commitment. They provide the freedom to explore Australia's diverse landscapes, making it crucial to keep them safe and secure. - read more
START HERE
Get a free caravan loan eligibility assessment and compare offers tailored
specifically to your circumstances.
Knowledgebase
Credit Utilization: The amount of credit you are using compared to the amount of credit available to you, typically expressed as a percentage.
