SYDNEY: Australian shares closed higher on Tuesday, boosted by technology and banking stocks, at a time when the country’s central banks held rates at a record low and the West cranked up sanctions against Russia over its invasion of Ukraine.

The S&P/ASX 200 index ended 0.7% higher at 7,096.5, extending gains to a third straight session, and climbing in tandem with firmer moves on broader Asian markets.

The Reserve Bank of Australia kept its cash rate at a record low of 0.1% and cited the war in Ukraine as a major new source of uncertainty as it stressed patience on tightening policy

“The market is probably pricing in the move towards hikes as the geopolitical situation calms down”, said Damian Rooney, director of equity sales at Argonaut, adding that investors are eyeing the Federal Reserve March meeting for a rake hike.