ASX 200 Afternoon Update: February 3, 2026
The Australian Securities Exchange (ASX) 200 experienced a notable gain on February 3, 2026. By 3:30 PM AEDT, the index had risen by 75 points, equating to a 0.86% increase, reaching 8854. The ASX 200 rebounded significantly following a sharp decline the previous day.
Market Performance and Drivers
Early trading on February 3 showed the ASX 200 climbing 118 points, or 1.3%, hitting a high of 8896.6. This surge was influenced by positive market conditions, particularly a robust performance on Wall Street and stabilizing metals prices.
Anticipation of RBA Meeting
Despite this strong performance, the index moderated its gains as investors braced for the Reserve Bank of Australia (RBA) meeting later that day. The outcome proved significant, marking the first interest rate hike in over two years.
Key Takeaways from RBA Meeting
- The RBA indicated a marked increase in inflation during the latter half of 2025.
- This inflation surge was linked to capacity pressures, raising concerns about prolonged inflation above targeted levels.
- Private demand growth and a rising housing market were noted, along with a tight labor market and ample credit availability.
Updated Economic Projections
The RBA’s updated forecasts revealed a rise in the trimmed mean inflation projection for the end of 2026, increasing from 2.7% to 3.2%. Additionally, the unemployment rate forecast was slightly adjusted downwards from 1.9% to 1.8%.
Future Implications
The central bank’s indication for further rate hikes was clear, with an implied cash rate suggesting approximately 35 basis points of increases, pushing expectations towards a rate of 4.20%. Investors and analysts will closely monitor these developments in the coming months.
