The S&P/ASX 200 climbed 1.3% to 8,893 on Tuesday, snapping a four-session losing streak as investors positioned themselves ahead of the Reserve Bank of Australia’s monetary policy decision due later in the day.

The rebound came despite expectations of a 25 bps rate hike, which would mark the first increase since November 2023.

If delivered, the move would make the RBA the first major central bank to pivot from a post-Covid easing cycle back to tightening.

Markets are also focused on Governor Michele Bullock’s post-meeting press conference, where her commentary and updated economic forecasts may provide clues on the outlook for policy decision.

Most stocks traded higher, led by financials and materials stocks.

CBA gained 1%, NAB rose 1.1%, Westpac advanced 1.5%, and ANZ added 1%.

Mining giants BHP Group climbed 1.8%, while Rio Tinto surged 2.5%.

Gold producers also outperformed, with Newmont Corporation, Evolution Mining, and Northern Star Resources rising between 2.6% and 5.3%.