Corrects paragraph 1 to remove reference to the minutes of the central bank's latest meeting
Dec 24 (Reuters) - Australian shares slipped on Wednesday as bank stocks fell, while miners limited losses on firmer commodity prices.
The S&P/ASX 200 index .AXJO was down 0.3% at 8,765.50 points by 2322 GMT. The benchmark rose 1.1% on Tuesday.
Minutes from the Reserve Bank of Australia's December meeting, released on Tuesday, showed policymakers had considered whether a rate hike would be needed in 2026, noting inflation risks had risen but that it would take "a little" time to assess them fully.
RBA Governor Michele Bullock had already taken a hawkish turn at a post-meeting media conference, ruling out further rate cuts and warning hikes might be needed if inflation did not subside.
Heavyweight financials .AXFJ fell 0.6% to ease from a one-month high, dragged by all the "big four" lenders that dropped between 0.3% and 0.8%.
With valuations already stretched and among the highest in developed countries, Australian banks could face pressure from higher interest rates, which might curb lending volumes despite margin upside.
The sub-index is set to gain more than 8% this year, compared to a 28% gain seen in 2024.
Mining stocks .AXMM, however, rose 0.4% to limit overall losses, as copper prices traded at record levels on speculative buying. MET/L
Iron ore heavyweight Rio Tinto RIO.AX gained 0.9% to climb to a record peak. The Anglo-Australian miner has been looking towards shifting its focus to its copper business to capitalize on record-high prices amid the green energy transition.
The sub-index was further helped by gold stocks .AXGD, rising 0.3% after climbing as much as 1% to a record high, tracking bullion. GOL/
Technology stocks .AXIJ retreated 0.7% to snap a four-session rally. Accounting software provider Xero XRO.AX was down 1.1%, while logistics software provider WiseTech Global WTC.AX slipped 0.8%.
In New Zealand, the benchmark S&P/NZX 50 index .NZ50 closed largely flat in a shortened session ahead of Christmas.
(Reporting by Nichiket Sunil in Bengaluru; Editing by Rashmi Aich)
((Nichiket.Sunil@thomsonreuters.com;))
For more information on DIARIES & DATA: U.S. earnings diary RESF/US Wall Street Week Ahead .N/O Global Economy Week Ahead DATA/ ................................................................ For latest top breaking news across all markets NEWS1