RBA surprises market by holding cash rate at 3.85%
The Reserve Bank of Australia (RBA) surprised markets by holding the official cash rate steady at 3.85 per cent following its July meeting.
After two days of deliberation, the Monetary Policy Board announced its decision on 8 July, revealing for the first time how the board voted. There was a split of six in favour and three against maintaining the rate.
In its post-meeting statement, the RBA said a tight labour market and easing trade uncertainty supported the case to keep rates on hold, despite ongoing risks in the economic outlook. It also suggested it was holding out for more economic – including quarterly inflation – data before making another move.
“The board continues to judge that the risks to inflation have become more balanced and the labour market remains strong,” the RBA said.
“Nevertheless, it remains cautious about the outlook, particularly given the heightened level of uncertainty about both aggregate demand and supply.”
The board added that monetary policy remained well-positioned to respond to global developments, should they materially affect inflation or activity in Australia.
“The board is focused on its mandate to deliver price stability and full employment and will do what it considers necessary to achieve that outcome,” the statement read.
Qudos Bank-Bank Australia merger takes effect
Bank Australia and Qudos Bank have now officially merged, creating a new customer-owned banking group with $18 billion in assets, around 900 staff, and more than 300,000 customers nationwide.
Both brands will continue to operate in the market under their existing names.
The group said customers will benefit from reduced fees, a larger branch network, and enhanced digital services as part of a strategy to invest in nationwide improvements.
The move followed strong support from members earlier this year, with 91 per cent of Bank Australia members and 78.43 per cent of Qudos Bank members voting in favour of the merger in April.
Jennifer Dalitz, chair of the new board and former chair of Qudos Bank, welcomed the completion of the merger and said: “The successful merger of Bank Australia and Qudos Bank is a testament to the shared values and commitment of both institutions to customer-owned banking.”
Finalised on 1 July 2025, the merger is the latest in a wave of consolidation among mutual banks, aimed at boosting scale and improving service offerings (see page 20 for more).
ASIC levies double for broking industry
Credit intermediaries are set to pay over twice as much in regulatory levies for the last financial year, according to the Australian Securities and Investments Commission (ASIC).
Under the 2024–25 Cost Recovery Implementation Statement, ASIC has forecast that credit intermediaries will pay $6.05 million in levies for FY25 – a 109 per cent increase on last year.
Each intermediary would be expected to pay an estimated minimum of $1,000, plus $43 per credit representative, with final invoices due early next year. While ASIC has not released a reason for the doubling in levies, the costs are largely based on the volume of regulatory activities for each industry subsector in 2024–25.
The surge in costs has sparked renewed calls for reform. The Mortgage & Finance Association of Australia (MFAA) acknowledged ASIC’s role, but said the funding model must be more equitable and proportionate, especially given brokers’ strong consumer outcomes and low complaint levels.
The MFAA executive for policy and legal, Naveen Ahluwalia, commented: “ASIC is performing its valuable role in monitoring the sector, and we acknowledge that. However, the costs associated with this activity need to be balanced and proportionate, ensuring they properly reflect an industry that continues to deliver strong results.”
LMG to acquire broker-built fintech
Major aggregator LMG has entered into an agreement to purchase The Brokers’ Bible, a fintech platform founded by Property before Prada broker Katherine Persoglia.
First launched in 2023, The Brokers’ Bible was built to reduce the need for brokers to know policy documents by heart and negate the need for brokers to call business development managers (BDMs) to ask policy questions.
LMG has now entered into an agreement to fully acquire the company for an undisclosed sum, as part of a broader move to roll out more AI-powered tools for its brokers.
The fintech will continue to operate independently and be publicly available for all subscribers (i.e. including brokers not aggregating through LMG).
Ewen Stafford, executive director and CEO of LMG, said: “The Brokers’ Bible is solving one of the biggest daily pain points for brokers, getting fast, clear and accurate answers on policy.
“It’s a smart, broker-built solution that fits perfectly with where we’re heading: an AI-powered, tech-enabled ecosystem that simplifies the complex, saves time, and helps brokers grow faster.
“This acquisition is another step in delivering on our 2028 strategy, backing innovation that puts brokers in front of more clients, more often, with more confidence.”
