The majority of shares on the ASX are trading higher ahead of an anticipated rate cut. -AAP Image
Australian shares have rallied after the Reserve Bank announced a widely expected interest rate cut, which will provide relief to thousands of businesses.
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The S&P/ASX200 rose 51.1 points, or 0.62 per cent, to 8,346.2 as the broader All Ordinaries gained 51.2 points, or 0.60 per cent, to 8,576.
The RBA announced it would reduce the cash interest rate for the second time in 2025 by 25 basis points to 3.85 per cent, its lowest level in two years.
Just before the decision, the top 200 was up 0.35 per cent and the All Ordinaries 0.33 per cent in the green.
Financials helped lift the bourse, rising 0.8 per cent as CBA carved out an all-time high, while the traditionally defensive utilities sector was the only stock class to close lower, down 0.6 per cent.
The Australian dollar sold off against major currencies after the rate cut announcement but largely recovered to trade at 64.10 US cents, down slightly from 64.12 US cents on Monday at 5pm.
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