Resurgent performances from miners and banks have lifted the Australian sharemarket higher after the Reserve Bank announced its first increase to the official interest rate since November 2023.
The S&P/ASX200 rose 78.5 points on Tuesday, up 0.89 per cent, to 8,857.1, as the broader All Ordinaries advanced 80.5 points, or 0.89 per cent, to 9,149.3.
The top-200 rose more than 117 points in early trade after a solid lead from Wall Street, before dipping sharply following the Reserve Bank's widely expected cash rate increase to 3.85 per cent.
The index crept higher in the last half hour of trading, as RBA governor Michele Bullock flagged future decisions would be data-dependent, noting some recent drivers of inflation increases may have been temporary.
The Australian dollar is buying 70.08 US cents, up from 69.39 US cents and spiking on the back of the RBA decision.
