SYDNEY, AAP – A Reserve Bank warning to borrowers that low interest rates will not last has contributed to extended losses on the share market.

The ASX posted its biggest fall of the month on Tuesday as almost all share categories fell.

Shares were already lower when Reserve Bank boss Philip Lowe said the central bank was trying to get interest rates up over time.

The benchmark S&P/ASX200 index closed down 49.7 points, or 0.67 per cent, to 7420.4 points.

The All Ordinaries closed lower by 51.1 points, or 0.66 per cent, to 7747.1 points.

Materials shares fared worst. BHP and Rio Tinto each lost more than two per cent.

The Australian dollar was buying 73.57 US cents at 1615 AEDT, higher from 73.43 US cents at Monday’s close.