ASX Set to Edge Lower Ahead of RBA Rate Decision

The Australian stock market is expected to open lower on Tuesday as investors await the Reserve Bank of Australia's (RBA) interest rate decision. The RBA will announce its decision at 2:30pm AEST, with economists and money markets broadly expecting the central bank to leave the cash rate unchanged at 4.35%. Financial stocks were among the main drags on Monday after Westpac fell more than 5% following a 20% decline in third-quarter mortgage applications.

IG market analyst Tony Sycamore said traders had been preparing for budget-related effects to emerge through the banking sector. 'Impacts on property prices, credit growth and removing investors from the market, that's going to flow through to the banks.'