The S&P/ASX 200 fell 0.9% to close at 8,814 on Tuesday, hitting its lowest level in over a month as market sentiment remained subdued amid the central bank’s latest policy move and its signal of a cautious approach to additional rate cuts. The RBA kept its cash rate at 3.60% in a unanimous decision, warning that inflation may be more persistent than expected after both headline and trimmed mean readings exceeded forecasts. The board also downplayed a surprise rise in September unemployment, noting that the labor market remains “slightly tight.” Meanwhile, Governor Bullock said the scope for further rate cuts is limited and that any monetary easing in this cycle may be smaller than in previous ones. Mining stocks were the biggest laggards amid lower iron ore prices, with Fortescue dropping 2.7%, Rio Tinto falling 2.6%, and BHP Group down 1.9%. Elsewhere, Novonix slumped 10.6% to a one-month low after Stellantis ended its offtake agreement with the battery materials producer.