The Australian share market has crept higher, shaking off hawkish comments by a Reserve Bank official that gave fresh hints a Melbourne Cup Day rate hike may be a real possibility.
The benchmark S&P/ASX 200 index finished on Wednesday 14.4 points higher at 8831.3, a gain of 0.16%, while the broader All Ordinaries rose 12.4 points, or 0.14%, to 8956.6.
RBA warning weighs on shares
The ASX 200 was down by 0.2% around lunchtime, after RBA deputy governor Andrew Hauser told a Sydney investment conference the inflation outlook was "materially worse" than the central bank had forecast and that businesses were beginning to view 3.5% inflation as the "new normal".
The Australian dollar climbed to a three-week high on Hauser's remarks, buying 70.13 US cents, from 69.73 US cents at 5pm on Tuesday.
