Australian shares have slumped amid investor fears the RBA will raise interest rates again. -AAP Image
The Australian share market has finished the week on a sour note as persistent inflation has investors worrying the Reserve Bank's next interest rate move could be to go higher.
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The benchmark S&P/ASX200 index on Thursday fell 107.1 points, or 1.39 per cent, to 7,575.9, to finish the week up 0.11 per cent.
The broader All Ordinaries closed down 100.1 points, or 1.26 per cent, at 7,837.4.
The domestic money market is pricing in a small chance the RBA board will raise the cash rate before it cuts.
Capital Economics economist Abhijit Surya believes the bank will lift the cash rate to 3.6 per cent at its next meeting in two weeks, with underlying inflation "all but certain to overshoot its current forecast".
The Australian dollar was buying 65.39 US cents, from 65.22 US cents at Thursday's ASX close.
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