RBA Rate Hike Predictions Reignite Inflation Fears

Westpac has joined ANZ in forecasting that the Reserve Bank of Australia (RBA) will increase the cash rate again in November, citing renewed inflation concerns. The RBA's September decision to keep the cash rate at 4.60% was unanimous, but RBA governor Michele Bullock warned that further rate rises are possible.

Bullock labelled the current cash rate 'restrictive', while noting that more hikes could be on the horizon. This warning comes as borrowing power becomes a crucial factor in borrowers' lender choices due to mounting serviceability pressure.

The RBA's latest cash rate decision has caused further pain for buyers, with reduced borrowing capacity and declining market confidence.