Australian shares inched higher on Tuesday, helped by gains in commodity stocks, while the country’s central bank governor said there were signs that inflation might be difficult to suppress.

The S&P/ASX 200 index rose 0.2% to 7,068.2 by 2340 GMT after a 0.4% gain on Monday, with most sectors trading in positive territory.

Reserve Bank of Australia (RBA) Governor Michele Bullock said the domestic economy was in a “challenging” situation with consumption slowing but inflation still elevated, and monetary policy was on a narrow path to balance these forces.

Minutes of the RBA’s Oct. 3 policy meeting released on Tuesday showed that the central bank considered raising rates, but judged there was not enough new information to warrant a move, though more would be available for its November meeting.

The September unemployment report due on Thursday is expected to play a key role in the RBA’s monetary policy decision next month.

In Sydney, energy stocks advanced 0.6% as oil prices edged higher ahead of US President Joe Biden’s Middle East trip.

Australian shares inch lower as banks, tech stocks drag

Shares of Woodside Energy rose 0.5% even though the country’s top independent oil and gas explorer narrowed its production forecast range and cut its capital expenditure outlook for fiscal 2023 after posting a lower-than-expected third-quarter revenue.

Heavyweight miners rose 0.2% after Dalian iron ore futures extended gains on Tuesday as traders remained optimistic about the near-term demand outlook.

Shares of BHP Group climbed as much as 0.6% even after the mining giant posted a near 4% drop in first-quarter iron ore output.

The company also announced the sale of two Queensland coal mines to Whitehaven Coal.

Gold stocks gained 0.7% as the Middle East conflict buoys the metal’s safe-haven appeal.

Tech stocks and financials fell marginally.

In New Zealand, the benchmark S&P/NZX 50 index fell 0.2% to 11,195.4.