Afternoon Update: RBA says further tightening is possible

The Reserve Bank of New Zealand has maintained interest rates at 5.5 per cent for the second consecutive meeting, citing the need to control inflation and support employment, amid weakening global economic growth and declining inflation pressures.

When assessing Australia’s interest rate position, at this afternoon’s lunch event in Brisbane, RBA governor Philip Lowe has stated, “it is possible that some further tightening will be required to return inflation to target within a reasonable timeframe.”

Currently, the ASX 200 is trading 0.35 per cent higher.

The SPI futures are up 30 points.

When assessing the sectors, Energy is performing the best, up by 1.84 per cent, while Health Care is the worst-performing sector, down by 0.66 per cent.

Among the large caps, Incitec Pivot is leading the gains, trading 5.05 per cent higher at $2.91, followed by Fortescue Metals Group and Woodside Energy Group.

On the other hand, Meridian Energy is the worst-performing large cap, trading 1.92 per cent lower at $5.11, followed by Infratil and Pilbara Minerals.

Moving to Asian markets, Japan's Nikkei has lost 0.80 per cent, Hong Kong's Hang Seng has gained 1.17 per cent, and China's Shanghai Composite has gained 0.55 per cent.

And in commodities, gold is trading at US$1,944 an ounce, while light crude is trading 4 cents higher at US$74.87 a barrel.

Finally, the Australian dollar is currently buying 67.24 US cents.
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Source: Finance News Network