Australian shares have taken a hit after the central bank hinted rates may be on hold for a while. -AAP Image
Australia's share market has handed back early gains after the Reserve Bank hinted investors may have to wait longer for the next reduction in borrowing costs.
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The benchmark S&P/ASX200 finished the day down 15.8 points, or 0.18 per cent, to 8,847, as the broader All Ordinaries slipped 14.6 points, or 0.16 per cent, to 9,133.9.
After a broadly positive session, the bourse slipped lower as the Reserve Bank held the cash interest rate at 3.6 per cent as expected, but its concerns about September quarter inflation slimmed hopes of a November rate cut.
Energy stocks led nine of 11 sectors into the red with a 1.7 per cent drop, while raw materials stocks counterbalanced broader weakness as record gold prices helped the segment notch a one per cent lift.
The Australian dollar is buying 66.01 US cents, up from 65.64 US cents on Monday at 5pm, the Aussie buoyed by higher forecasted interest rates.
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