Australian stock market ends six-week low at 8,920 points as Westpac forecasts November rate hike to 4.6%
The ASX 200 closed down 1% at its lowest level in six weeks amid falling consumer confidence and bank warnings about tight monetary policy.
The Australian shares market fell 1 percent to close at 8,920 points on Tuesday, reaching its lowest value in six weeks. Westpac Bank changed its interest rate forecast during the trading day, now predicting the Reserve Bank of Australia will raise rates to 4.6 percent at a meeting in November. National Australia Bank released data showing business confidence dropped two points to negative eight by August, and conditions fell into negative territory for the first time in years. The Reserve Bank's Sarah Hunter stated inflation remains her top priority and the central bank will not tolerate rates remaining above target for an extended period. Additional indicators of economic pressure included a slump in consumer sentiment falling 5.2 percent to 84.4 and Australia's ten-year bond yield climbing to its highest level since 2011.
