The Australian stock market experienced a significant rally on Tuesday afternoon, following the Reserve Bank of Australia’s decision to maintain the cash rate at a 12-year peak of 4.35%. The S&P/ASX 200 Index surged by 1.4% to 7,793, buoyed by gains across all sectors. Concurrently, the Australian dollar depreciated slightly to US66.10¢.

Despite a hold on interest rates, the RBA revised its inflation forecast upward to 3.8% by year-end, adjusting its unemployment expectation to 4.2%. The utilities sector led the market gains, increasing by 2.6%, with AGL Energy’s shares soaring 6.2% after the company revised its 2024 earnings forecast upwards.

Technology stocks also rose, with WiseTech and TechnologyOne climbing by 1.5% and 1.7% respectively. In the commodities sector, BHP advanced 1.5%.

In corporate developments, ANZ announced a $2 billion share buyback and a dividend of 83¢ per share, despite a 7% drop in cash profit. Louis Dreyfus heightened its takeover bid for Namoi Cotton, which lifted its share price by 1.4%. Conversely, Sims’ shares plunged by 5.8% following a severe profit warning. HMC Capital reported a promising 21% increase in projected earnings per share for FY2024 at a Macquarie conference.