Market Wrap / rate relief

The RBA cut rates for the first time since the Covid-19 pandemic Tuesday, with the board saying progress had been made on inflation. However the RBA signalled caution ahead of further policy easing, with swaps implying just a 20% probability for a follow up cut in April.The Australian sharemarket ended the session lower, with the S&P/ASX 200 closing the session down 0.66% to 8,481 points.

Investors offloaded shares of rate-sensitive banks, which had gained over the past four years when borrowing costs remained steady. The financial sector declined 1.33%.

Following the RBA's decision, all "Big Four" banks reduced their home loan rates by 0.25%. CBA shed 1%.

Mining stocks dipped 0.42%, with BHP - the world's largest-listed miner, up just 0.07% after reporting a 23% drop in interim profit to $5.1 billion, its lowest since 2019, while also warning of growth risks due to potential US-China trade tensions. Rio Tinto gained 0.20%.

And Qantas shares mainted a 0.22% gain after the ACCC approved Virgin's tie-up with Qatar Airways.

Finally, if you missed our deep dive into Private Credit today with MA Financial Group's Frank Danieli, it's worth a watch.