ASX 200 Index clings to near 7700 after RBA decides to keep rates unchanged
|- S&P/ASX 200 Index marks gains after RBA’s policy decision.
- RBA has maintained the policy rate at 4.35% during its March policy meeting.
- RBA Governor Bullock highlighted caution that the inflation fight is not yet won.
The S&P/ASX 200 Index continues its upward momentum, marking the third consecutive session of gains. Trading higher around 7700, up approximately 0.27% on Tuesday. Meanwhile, the Reserve Bank of Australia (RBA) has maintained the policy rate at 4.35% for the third consecutive meeting, as announced during its March policy meeting.
The Australian equity market is buoyed by gains in the energy and real estate sectors. Mining and energy stocks are primarily on the rise due to stronger commodity prices. The top-performing stocks are Nickel Industries Limited and Bellevue Gold Limited, which have surged by 7.43% and 6.71%, respectively.
On the other hand, companies with the lowest percentage returns include Reward Minerals Ltd, which plummeted by 40.0%, Oldfields Holdings Ltd down by 27.27%, and Resource Mining Corporation Ltd, which fell by 21.74%.
The S&P/ASX200 VIX is notably lower today, decreasing by 4.35% to 10.85, reaching a new 50-day low. Conversely, the All Ordinaries Index is on the rise, gaining 32.60 points to reach 7,961.40.
RBA Governor Michele Bullock addressed the policy outlook during a press conference following the monetary policy decision on Tuesday. She noted progress in the fight against inflation, citing recent data indicating the country is on the right track.
However, Governor Bullock emphasized the importance of closely monitoring employment numbers. She highlighted that risks to the outlook are finely balanced and cautioned that the battle against inflation is not yet won. Additionally, markets are cautiously awaiting policy decisions from the Federal Reserve.
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