The ASX has sunk on Tuesday as investors await the Reserve Bank of Australia’s cash rate call where it is widely expected to hold.

The index fell 0.3 per cent after the first 40 minutes of trading.

Money markets predict a 94.5 per cent chance of a hold with just a 5.5 per cent chance of a cut.

Josh Gilbert, a market analyst from trading platform eToro, said the recent uptick of inflation had essentially killed any hopes of a rate cut on Tuesday.

“The RBA will be making its second-to-last rate decision for the year on Tuesday, and there’s not much optimism left for a cut,” Mr Gilbert said.

“Last week’s stronger-than-expected inflation print almost certainly pushes back the expectation of any more rate cuts before the year’s end.”

Materials companies were amongst the poor performers

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