SYDNEY, AAP – Investors have enjoyed a broad-based rally on the Australian share market ahead of a highly anticipated rates forecast by the Reserve Bank on Tuesday.

All share categories except financials closed higher on Monday after US markets ended last week better.

Investors were concerned about Westpac’s profit margins and rising costs and sent shares lower by more than seven per cent. The bank provided a $3.5 billion share buyback after improved full-year profit.

Meanwhile, analysts have tipped the Reserve Bank to bring forward the timing of a rate rise after it did not defend surging bond yields.

The benchmark S&P/ASX200 index closed higher by 47.1 points, or 0.64 per cent, to 7370.8.

The All Ordinaries closed up 53.1 points, or 0.7 per cent, to 7692.2.

The Australian dollar was buying 75.06 US cents at 1620 AEDT, lower from 75.49 cents at Friday’s close.