ASX 200 Driven by Mining Stocks as Inflation Risks Rise

The ASX 200 index rose slightly as mining stocks benefited from higher iron ore and copper prices, driven by Chinese buyers restocking ahead of a holiday break.

RBA Governor Michele Bullock warned that inflation risks are increasing due to rising energy costs tied to Middle East tensions and demand linked to the AI buildout, which has surprised on the high side in recent readings.

Markets still expect a 0.25 percentage point rate hike at the September 29th meeting, with traders pricing around a 92% chance of an increase, and UBS predicting another similar move later in the year.