On Monday, the Australian stock market closed slightly higher, boosted by the energy and healthcare sectors, while investors anticipated the decisions of the US Federal

Reserve and the Australian central bank regarding interest rates later this week.

The S&P/ASX 200 index .AXJO increased by 0.4% to close at 7,334.60-points, after recording its best day since April 14. The US Federal Reserve is expected to announce its rate decision on Wednesday, with the market anticipating a 25 basis point hike to 5.00%-5.25%.

The Reserve Bank of Australia (RBA) will hold a meeting on Tuesday, with economists predicting that the RBA will maintain the rate at 3.6% for a second straight meeting, despite Australia's inflation rate remaining higher than the RBA's target range of 2%-3%.

Nonetheless, some experts like Henry Jennings, senior analyst at Marcustoday Financial Newsletter, believe that Australia has "reached a peak of the interest rate cycle" and that inflation is beginning to decline. In contrast, China, Australia's top trading partner, experienced unexpected shrinkage in its manufacturing activity in April, affecting the country's resource stocks.

Energy stocks .AXEJ increased by 1.1%, contributing the most to the local bourse, while financials .AXFJ rose by 0.8%, with the four major banks reporting gains. Healthcare .AXHJ and real estate stocks .AXRE climbed by 1% and 0.6% respectively. Meanwhile, New Zealand's benchmark S&P/NZX 50 index .NZ50 fell by 0.1% and ended the session at 12,002.97 points. Photo by Danausi, Wikimedia commons.