Banks, miners drag Australia shares lower; RBA decision this week

March 31 (Reuters) – Australian shares fell on Monday, with mining and bank stocks leading the losses, ahead of the Reserve Bank of Australia’s (RBA) interest rate decision this week.

The S&P/ASX 200 index slipped 1.4% to an over over-week of 7,783.2 points, as of 2341 GMT. The benchmark is set to end the month 2.3% lower, second consecutive month of losses.

The RBA is expected to keep interest rate unchanged on Tuesday, according to a Reuters poll of economists.

Policymakers have downplayed the possibilities of further rate cuts, as they await stronger signs of easing inflation. The RBA had cut interest rates for the first time in over four years last month.

Meanwhile, economists still expect two rate cuts this year, with the next one priced in May.

Miners fell 2% to its weakest level in two weeks, tracking a decline in iron ore prices.

Mining giants BHP, Rio Tinto and Fortescue shed between 2.2% and 2.3%.

Heavyweight banks followed with a 1.6% decline, with the “Big Four” banks falling between 1.5% and 2%.

Gold stocks slipped 1.1% after rallying for four straight sessions. Northern Star Resources fell 0.5% and Evolution Mining dipped 0.7%.

Energy stocks fell 1.3% after gaining for four consecutive sessions tracking oil prices which retreated on worries that U.S. tariff wars could spark a global recession.

Among corporate news, shares of ASX fell as much as 1.9%.

The Australian securities regulator has ordered the bourse operator to commission an independent inquiry into the failure of its clearing platform.

New Zealand’s benchmark S&P/NZX 50 index was headed for a third straight session of losses, declining 0.3%.

The Reserve Bank of New Zealand said on Monday it would review bank capital requirements this year following criticism of the regime for being too stringent and reducing competition in the sector.

(Reporting by Sneha Kumar in Bengaluru; Editing by Eileen Soreng)