Market Wrap / RBA ripples

The Reserve Bank of Australia raised interest rates by 25 basis points to 3.85%, with the board expressing unease over inflation remaining outside its target range. The decision was unanimous and reflects a broader concern about persistent inflation and a resilient labour market. According to Sean Fenner from Westpac, underlying inflation remains too high to ignore, and consumer activity grew strongly in the fourth quarter. The rate hike caused the Australian dollar to surge past 70 US cents, attracting foreign investment but also pressuring mortgage holders and some sectors.,Equities experienced volatility following the announcement but recovered as the move had been anticipated by the big four banks. Rate-sensitive real estate stocks, including Goodman Group (ASX:GMG), closed higher, while gold miners like Evolution Mining (ASX:EVN) and Newmont (ASX:NEM) rebounded after recent losses. The technology sector also performed well, with Xero (ASX:XRO), SecTech, and TechnologyOne (ASX:TNE) making gains. In small and mid-cap space, Corum Group (ASX:COO) surged by 31% after an acquisition confirmation, benefiting small cap investors.,Credit Corp (ASX:CCP) reported half-year net profit just over $44 million, below analysts’ estimates, resulting in a significant share price decline. Neuren Pharmaceuticals (ASX:NEU) saw shares fall nearly 10% after a negative EU decision on its Rett syndrome treatment application.,Key Points:
- RBA lifted rates 25 basis points to 3.85% amid inflation concerns
- Australian dollar surged, equities dipped then recovered, gold and tech sectors rallied
- Goodman Group (ASX:GMG), Evolution Mining (ASX:EVN), and Newmont (ASX:NEM) made notable gains
- Credit Corp (ASX:CCP) and Neuren Pharmaceuticals (ASX:NEU) shares declined after results and regulatory news