The RBA’s decision to leave the official cash rate at 4.75% failed to lift sentiment, which remained battered by the overnight plunge on European markets.
Energy stocks led the market lower amid further sharp declines in oil prices; Origin Energy fell 3.7% and Santos gave up 2.8%.
The major mining companies were also hit; BHP and Rio Tinto shed around 2% each.
NAB (-2.8%) paced the declines among the big four after a news report suggested it may acquire more than 600 Lloyds branches in the UK.
Retailers failed to receive lift from the RBA rate decision; JB Hi-Fi and Harvey Norman lost 1.7%, and 1.2%, respectively.
The ASX 200 dropped 66 points (-1.6%), settling at 4076.