Australian Stocks Fall as RBA Signals Rate Hikes

The S&P/ASX 200 experienced a downward trend on October 21 and 22, 2026, falling to 8,782.20 by Thursday. The decline began Wednesday after Reserve Bank of Australia Deputy Governor Andrew Hauser issued hawkish remarks, noting that while tighter monetary policy was working, the inflation outlook remained materially worse due to factors like elevated crude oil prices. These comments pushed market expectations for a November interest rate hike from 30 percent to 44 percent.

Sector performance varied across the two days. Major miners, including BHP Group and Rio Tinto, saw consistent declines. Energy stocks such as Woodside Energy and Beach Energy also dropped significantly by Thursday. In the retail sector, Nick Scali shares plunged more than 17 percent after the company warned of a sharp profit decline for the December half.

Volatility marked the performance of NextDC. The company's shares plummeted nearly 40 percent on Wednesday after it reduced guidance due to power delays at its M3 data centre in Melbourne. However, the stock recovered nearly 9 percent on Thursday. The overall market downturn occurred despite positive overnight performance from European markets and Wall Street.