Prices on Australia's benchmark bourse have taken a hit on RBA rate-hike expectations. -AAP Image
Australia's share market has posted its worst day since early June after three of the big four banks warned interest rate hikes could come sooner than expected.
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The S&P/ASX200 fell 89.6 points on Thursday, down 0.98 per cent, to 9,038.2, as the broader All Ordinaries tumbled by 95.6 points, or 1.02 per cent, to 9,243.2.
After July's hot inflation print, ANZ and CommBank economists have tipped the Reserve Bank will lift the official cash rate by November.
But NAB analysts believe the hike will come by the RBA's late September meeting.
Nine of 11 local sectors ended the session lower, as rate-sensitive segments such as consumer cyclicals, real estate trusts and IT stocks plummeted, while banks and miners also sold off sharply.
The Australian dollar is buying 71.82 US cents, up from 71.79 US cents on Wednesday at 5pm, as hawkish tailwinds lifted the Aussie to two-month highs.
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