Australian shares dipped on Tuesday as gains in financials failed to make up for losses in resources-related stocks, while hawkish commentary from the country’s central bank at its July meeting raised bets of a rate hike next month.

The S&P/ASX 200 index closed 0.2% lower at 7,283.8, marking its biggest percentage loss since July 10. Minutes from the Reserve Bank of Australia’s (RBA) meeting revealed the central bank considered raising the cash rate in July by 25 basis points (bps) to 4.35%, before deciding on a pause.

Markets are still leaning towards a pause from the RBA in August, although they have fully priced-in a quarter-point increase in interest rates by the end of the year.

“One more rate hike in August from the RBA would not be surprising as I think inflation is still elevated and labour market is still very tight”, eToro market analyst Josh Gilbert said. Energy stocks slid 0.8% to log their biggest percentage loss in almost two weeks.

Shares of Woodside Energy Group slipped 1.1% after the energy giant said it expected the first oil barrel from the Sangomar project in Senegal to flow through by mid-2024, compared to an initial target of late 2023.

Australia shares inch lower weighed by miners; RBA minutes in focus

Heavyweight miners followed suit, declining 0.7%.

Rio Tinto dipped 0.8%, while BHP Group also fell 1%.

Bucking the trend, banks jumped 0.8% and hit an 11-week high.

The so-called “Big Four” banks rose between 0.7% and 2%.

Shares of Ansell slumped 14% after the medical gloves maker said it planned to temporarily slow down output in fiscal 2024, hitting core profit for the period.

Syrah Resources fell 16.3% as its graphite output significantly fell in the June-quarter as it as affected by the shutdown of its flagship Balama graphite operations in Mozambique for May and June.

New Zealand’s benchmark S&P/NZX 50 index fell 0.1% to finish the session at 11,932.81.