End-of-day summary:
The share market had its best session in a month after the Reserve Bank left its benchmark rate on hold, as expected, while warning it would be "vigilant" to the risk of rising inflation.
Firmly ahead before the afternoon rates announcement, the ASX 200 briefly pared its rally before recovering to finish 78 points or 1.01% higher. Today's advance was the index's strongest since a 128-point rise on May 16.
The RBA reiterated its commitment to bringing inflation back within its 2-3% target range, observing "recent data have been mixed" and "reinforced the need to remain vigilant to upside risks to inflation". The bank left the cash rate target at a 12-year high of 4.35%.
The board retained its neutral stance on rates, noting it "is not ruling anything in or out". However, Governor Michele Bullock later told a press conference the board discussed raising rates, but not the case for a cut.
All 11 sectors rallied here, led by utilities and financials. The materials sector was held back by a 5.18% slump in Fortescue Metals after a block of shares in the miner were sold at a sharp discount to yesterday's closing price.
