Aust shares drop again as Reserve Bank talks rate hikes

Every sector finished flat or lower except for energy, which rose two per cent. (Steven Saphore/AAP PHOTOS)

The Australian share market has dropped for a second day, falling further into the red after the Reserve Bank re-confirmed its willingness to raise rates to combat inflation.

The benchmark S&P/ASX200 index finished Tuesday down 32.5 points, or 0.42 per cent, to 7,718.2, while the broader All Ordinaries fell 32.6 points, or 0.41 per cent, to 7,959.7.