Australian Share Market Slumps for Third Week Amid Rising Interest Rates

The Australian share market experienced its third consecutive week of losses as rising interest rates weighed on investors.

The ASX 200 index closed at 8731.2 points, down just 1 point from the previous week's close, but still marking a 0.2% decline for the week.

The Reserve Bank of Australia (RBA) governor Michele Bullock warned about higher inflation, citing upside risks to inflation as materialising, which led to negative market sentiment.

Markets are now giving a 95% chance that the RBA will raise the cash rate to 4.6% when it meets on September 28 and 29, with another rise in November and an extra rate increase for March next year fully priced in.