Australia shares widen losses as central bank holds rate at 12-year peak
Updates with RBA decision, moves
Nov 5 (Reuters) -Australian shares extended losses on Tuesday after its central bank retained the key policy rate at a 12-year high in an attempt tokeep the policy restrictive until coreinflation is tamed.
The S&P/ASX 200 index .AXJO fell 0.4% to 8,131.4 points by 0352 GMT. The benchmark was trading 0.3% lower ahead of the policy decision. It had closed0.6% higher on Monday.
The Reserve Bank of Australia (RBA) kept the interestrate unchanged, in line with the Reuters' poll, reiterating that the policywould need to be restrictiveuntil core inflation slowed asdesired.
Australia's sticky core inflation data last week also reinforced expectations that the central bank, which lags its peers in starting the monetaryeasing cycle, will further delay its cuts.
Australian banks .AXFJ slid 0.8% as investors booked in profits. The largestlender, Commonwealth Bank of Australia CBA.AX, dropped 0.7%, while Westpac WBC.AX shed 1.5%.
Energy stocks joined banks to decline 0.7%, tracking a fall in global oil prices. Sector majors Woodside WDS.AX and Santos STO.AX were trading 1.1% and 0.7% lower, respectively.
Global investors are cautious ahead ofthe U.S. presidential election, as RepublicanDonald Trump and Democrat Kamala Harris remain virtually tied in opinion polls ahead of polling on Tuesday and the winnermight not be known for days after voting ends.
Bucking the trend, miners.AXMM traded 0.4% in the green. Sector heavyweights BHPBHP.AX, Rio Tinto RIO.AX and Fortescue FMG.AX gained 0.7%, 0.9% and 0.7%, respectively.
Other sectors, including the consumer staples .AXSJ, reits .AXRE and gold .AXGD, also dragged.
Meanwhile, pizza-maker Domino's DMP.AX was the biggest loser on the benchmark, with shares dropping to theirlowest in nearly two months after its long-serving chief executive Don Meij decided to step down.
New Zealand's benchmark S&P/NZX 50 index .NZ50 was trading marginally higher.
Reporting by Roushni Nair and Rajasik Mukherjee in Bengaluru; editing by Alan Barona and Sumana Nandy
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