However, the local bourse 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 would fall to 4 per cent next year after peaking at almost 8 per cent this year.

“In our eyes, this is unrealistic, as coal, gas and oil prices are sticky at higher levels supported by the lack of supply. Demand will also rise ahead of the US/EU winter and pressure energy prices higher,” Amir said.

Meanwhile, regional airline Rex lifted by 6 per cent after it announced it would accelerate the rollout of several new Boeing 737s as revenue jumped higher than pre-pandemic levels in the first month of the new financial year.

Rex said domestic route revenue in July alone was almost double the June quarter, while revenue per flight was 7 per cent higher on regional routes than 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 anybody but it will sting. Families will now have to make more hard decisions about how to balance the household budget in the face of other pressures like higher grocery prices, and higher car prices and the cost of other essentials,” said Treasurer Jim Chalmers after the RBA’s interest rate rise.

You may have missed: ASX-listed private hospital operator Ramsay Healthcare has officially terminated its funding agreement with health insurance giant Bupa. Ramsay gave notice of the termination in early May, but the deal officially lapsed on Tuesday after a new agreement could not be reached. Bupa patients may now face significant out-of-pocket costs at Ramsay hospitals.