The Australian sharemarket tumbled lower on Tuesday, as the Reserve Bank of Australia kept rates on hold and warned inflation could remain above three per cent well into 2026.

The benchmark ASX 200 fell 81.1 points, or 0.91 per cent, to settle at 8813.7, while the broader All Ordinaries index lost 84.3 points, or 0.92 per cent, to 9098.2.

The market spiked briefly at 2.30pm on the decision from the RBA to keep the cash rate steady at 3.6 per cent, but then retreated as Governor Michele Bullock fronted the cameras and warned there was a risk that inflation could move away from the Board’s two to three per cent target band.

“We still judge we are marginally on the tight side and that is what is baked into the forecast, we still have a little tightness taking a little heat out of the econ

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