ASX slips in early trade on rate hike calls; Qantas gains, Sigma slumps
The Australian sharemarket experienced a significant decline as investors reacted to higher-than-expected inflation data. Economists are now predicting that the Reserve Bank of Australia may raise interest rates as early as next month.
Why it matters
Rising interest rates impact borrowing costs for consumers and businesses, potentially slowing economic growth and affecting market valuations.
— 5:18pm , first published August 27, 2026 — 5:26am
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Share A A A The Australian sharemarket had its biggest slump in 12 weeks as bets firmed for another interest rate rise as early as next month and investors digested another flood of results from companies including Qantas and Wesfarmers.
The S&P/ASX 200 fell 89.60 points, or 1 per cent, to 9038.20 on Thursday, with all 11 sectors in the red bar healthcare and industrials. The losses came after the bourse fell 0.4 per cent on Wednesday as shock inflation figures put another rate hike on the table. Wall Street drifted through a quiet session overnight after a report showed US inflation was also worse than expected.
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