AU Evening Wrap: Australia Shares Slip 0.6% as RBA Holds Rates

$S&P/ASX 200 (.XJO.AU)$ closed 0.6% lower at 7581.6 as the country's central bank held interest rates. Following a negative lead by U.S. equities, the benchmark index was already down by 0.5% when the Reserve Bank of Australia said it would hold the cash rate at 4.35% and revised down its inflation forecasts.

The heavyweight materials sector dropped 1.1%, with shares of lithium, gold and iron-ore miners all losing ground. $Rio Tinto Ltd (RIO.AU)$, $BHP Group Ltd (BHP.AU)$ and $Fortescue Ltd (FMG.AU)$ gave up between 0.55% and 2.9%. Gold miner $West African Resources Ltd (WAF.AU)$ tumbled 11% after issuing its annual production guidance.

Banks $Westpac Banking Corp (WBC.AU)$, $National Australia Bank Ltd (NAB.AU)$ and $CommBank (CBA.AU)$ lost between 0.1% and 1.0%.