The central bank made mention of the noticeable decline in spending appetite within the Australian resources sector. Despite the weakness it did say it expects a significant contribution to gross domestic product from mining investments.
In relation to inflation the bank said it remained within its target range on an underlying basis and it expected it to remain within that band for the next one to two years. The sectors finished mostly in positive territory, with IT and financials the best performers.
Material, energy and property stocks were the weakest links. The big four banks all climbed higher, with NAB the best of group, climbing 1.1%. The mining majors had a shocker of a day, not helped by a poor night on commodity markets or the RBA’s downbeat assessment towards the sector.. BHP and Rio Tinto declined 0.8%, and 1.3%, respectively.
The ASX200 added eight points (+0.2%) to settle at 4912.