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Australian stocks surge at end of trade, S&P 200 up 99.6pts

Australian stocks surge at end of trade, S&P 200 up 99.6pts

PERTH: The Australian sharemarket has sailed through the latest official cash rate decision unscathed, ending higher after broad-based gains led by the banks.

At the 4.15pm (AEDT) official market close, the benchmark S&P/ASX200 index was up 99.6 points, or 1.93 per cent, at 5266.1, while the broader All Ordinaries index climbed 94.4 points, or 1.81 per cent, to 5312.6.

As expected, the Reserve Bank of Australia at 2.30pm (AEDT) revealed it had decided to keep the cash rate at its historic low of 2 per cent.

IG market analyst Angus Nicholson said the RBA decision had seen the market pricing for a February or March cut fall after the central bank noted that economic conditions had firmed over recent months, although remained below trend.

“In particular, they point to the increased credit growth seen in recent months and evident in yesterday’s aggregate financing data,” he said.