Australian stocks fall slightly

Australian stocks fell slightly as iron ore prices dipped and the Reserve Bank of Australia warned it will not hesitate to raise interest rates again to combat inflation.

The benchmark S&P/ASX 200 slid 0.23 percent to 7,682, snapping a two-day winning streak. The broader All Ordinaries index ended 0.34 percent lower at 7,886.50.

Reserve Bank of Australia Governor Michele Bullock said the policy board will not hesitate to lift interest rates if needed to contain persistently high inflation. The board is vigilant on upside risks on inflation, the hawkish governor said in a speech on Thursday.

She noted that the gap between aggregate demand and aggregate supply in the economy is larger than previously thought and this is resulting in persistent inflation. Inflation is not expected to be in the 2-3 percent target range until the end of 2025, she observed.

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