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 is a real possibility.
The benchmark S&P/ASX200 index finished Wednesday 14.4 points higher at 8831.3, a gain of 0.16 per cent, while the broader All Ordinaries rose 12.4 points, or 0.14 per cent, to 8956.6.
The ASX200 was down by 0.2 per cent 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 businesses were beginning to view 3.5 per cent inflation as the “new normal”.
The Australian dollar climbed to a three-week high on Mr Hauser’s remarks, buying 70.13 US cents, from 69.73 US cents at 5pm on Tuesday.
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