Australian shares face steep weekly drop due to interest rate concerns

Australian equities have experienced a significant downturn this week, with the S&P/ASX 200 Index, a key measure of the country's stock market performance, falling by 4%. This decline, which has been driven by concerns over potential additional increases in interest rates by the central bank, marks the most substantial weekly drop since June 2022.

The banking and mining sectors have been particularly hard hit, contributing significantly to the downward pressure on the S&P/ASX 200 Index. The decline in these sectors is more pronounced compared to other regional benchmarks.

In addition to domestic concerns over interest rates, external influences have also played a part in shaping Australia's stock market trajectory this week. One such influence is the Federal Reserve's sustained high-rate policy, which is adding to the strain on Australian equities.

The impact of these factors combined has pushed Australian shares towards their most significant weekly decline in over a year, highlighting the sensitivity of the market to shifts in monetary policy both at home and abroad.

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