Australian shares rise despite RBA inflation warning

Summarised from 2 outlets · Updated 21 Oct, 08:32 · Archive

The Australian sharemarket closed 0.16 per cent higher despite the RBA warning that inflation came in worse than expected.

The Australian sharemarket closed 0.16 per cent higher on Wednesday, with the ASX 200 rising 14.4 points to 8831.30 after a late afternoon rally that reversed earlier losses. The All Ordinaries added 12.40 points or 0.14 per cent to 8956.60. Eight of the 11 sectors finished higher, with telecommunications and the major banks driving the gains. Telstra jumped 1.89 per cent to $4.85, while Commonwealth Bank rose 0.91 per cent to $157.01 and National Australia Bank surged 1.86 per cent to $39.93. The technology sector fell 3.32 per cent, weighing on overall performance.

The market's early gains came despite RBA deputy governor Andrew Hauser warning that inflation came in 'materially worse' than expected. Money markets interpreted his comments as signalling another interest rate rise, initially pushing the market lower. The Australian dollar bounced to 70.14 US cents against the greenback. Betashares chief economist David Bassanese said the RBA's recent comments suggest it has 'lost patience' waiting for inflation to fall back into its target band and may believe a more serious economic downturn is needed to achieve this.

How it is being reported

• Australian shares close higher despite RBA interest rate warnings and surging oil pricesThe Australian sharemarket has closed higher despite traders shrugging off rising oil prices and RBA warnings that inflation came in “materially worse” than expected.Perth Now · 21 Oct, 07:57
• Australian shares close higher despite RBA interest rate warnings and surging oil pricesThe Australian sharemarket has closed higher despite traders shrugging off rising oil prices and RBA warnings that inflation came in “materially worse” than expected.The West Australian · 21 Oct, 07:56

In this story: Australian Securities Exchange · Reserve Bank of Australia · Commonwealth Bank · National Australia Bank · Westpac · Telstra · Andrew Hauser · Australia

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