FEAR & GREED | Business News Afternoon Report | Rate rise hits AUD, ASX
Feb 3, 2026
Markets react to an RBA cash rate lift and its impact on the AUD and ASX sectors. Political drama as Nationals move to the crossbench and shift question time focus. Qantas plans to sell its Jetstar Japan stake. Corporate updates cover pharma, contractors and a surprising guidance range from Credit Corp. High-profile subpoenas draw attention in a major probe.
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Rate Hike Moves FX And Equities
- The Reserve Bank raised the cash rate by 0.25 percentage points because inflation was higher than expected over the past six months.
- The hike lifted the Aussie above US$0.70 but pressured equities, showing rates still sway FX and stocks simultaneously.
ASX Rallies Despite Higher Rates
- The S&P/ASX 200 rebounded to close up 0.9% with tech and miners leading gains despite the rate rise.
- Rate-sensitive sectors surprisingly outperformed, indicating market nuance beyond simple rate-driven selloffs.
Nats On Crossbench As Parliament Resumes
- The Nationals took seats on the crossbench as Parliament resumed, reflecting ongoing coalition tensions about reuniting.
- Question time focused on the rate decision and Labor's economic management, underscoring politics tied to monetary policy.