Surprise! The Reserve Bank of Australia has decided to lift the cash rate once again — upping it by 25 basis points to 3.85 per cent for May.
The news comes despite many experts predicting the RBA would hit pause on rates hikes again after last month’s breather. The latest increase follows ten consecutive rises between May 2022 and March 2023.
The unprecedented update spells more pain for mortgage holders and household budgets.
In the red
The disappointing rate news arrived in the wake of grocery giant Woolworths Group (WOW) posting an 8 per cent surge in the value of its total sales over the March quarter to $16.3 billion.
The group also posted a 5 per cent increase in its eCommerce sales to $1.5 million for the three-month period.
Despite the profits, the company’s share price has dipped to $38.58.
Meanwhile, Mayfield Group Holdings (MYG) was hit the hardest today, tumbling nearly 28 per cent to 31 cents.
The fall comes despite the company re-evaluating its Gidgie Court property in South Australia on Monday.
The property was valued at $12.4 million — up from its purchase price of $7.4 million. Mayfield said it intended to reflect the value of the property in its 2023 Annual Report.
Indexes
The indexes reflected the subdued mood set by the cash rate announcement. The ASX 200 dipped 0.92 per cent.
The sectors echoed the sentiment, with all but technology ending the day in the red. Real estate felt the brunt of the blow, down more than 2 per cent, with communication services and energy not far behind.
In the green
Pinnacle Minerals (PIM) led the pack today, up 50 per cent. The company has planned a drilling program to further test its Disrupter target within its Great Southern rare earth element project in WA.
The 15-hole program is due to kick off in mid-May. Pinnacle Minerals ended the day at 15 cents.
Meanwhile, Coolabah Metals (CBH) has inked a deal to acquire four lithium exploration properties within the James Bay region of Quebec.
As part of the proposed acquisition, Coolabah will also obtain all share capital in Hampden Lithium. Company shares shot up 30 per cent, trading at 12.5 cents.
And lastly, Many Peaks Gold (MPG) climbed more than 11 per cent after securing the right to acquire a 100 per cent interest in the Yarrol and Mt Steadman gold and cobalt projects in Queensland. The company ended the day at 40 cents.