RBA Cash Rate Hits 15-Year High Amid Broader Market Volatility

The Reserve Bank of Australia (RBA) has hiked the cash rate to a 15-year high, and this move is having significant implications for the mortgage and finance broking space. In its latest decision, the RBA increased the cash rate by 25 basis points, with governor Michele Bullock stating that the current rate may be 'restrictive' but leaving open the possibility of further hikes.

Westpac has joined ANZ in forecasting a November hike, which could lead to associations urging early loan reviews for brokers and clients. Meanwhile, ASIC is set to review lender controls and introducer programs, as well as broker oversight by lenders.

Solo brokers are also facing increasing business pressures, with over 80% reporting a plunge in investor inquiries. This trend highlights the challenges faced by independent mortgage brokers in today's market.