Day traders' after-market lounge June 6

Thanks afternoon crew.


What happened today:

Aussie shares slumped after the Reserve Bank raised benchmark rates to their highest level in more than a decade and indicated additional increases may be needed to contain inflation.

The ASX 200 was already in the red and plunged another 50 points in a matter of seconds when the news broke at 2.30 pm AEST. Today's decision had been seen as a close call, with a majority of economists forecasting no change.

The Australian benchmark briefly recovered some of its losses before dropping again in the closing auction to a loss of 87 points or 1.2%. The dollar jumped 0.7% to 66.6 US cents. Yields on government bonds also rallied.

The central bank lifted the cash rate target by 25 basis points to an eleven-and-a-half year high of 4.1%, citing the need to bring inflation down from current levels near 7%. Governor Philip Lowe said "upside risks" to the inflation outlook had increased.

"Some further tightening of monetary policy may be required to ensure that inflation returns to target in a reasonable timeframe," he added.