The latest rate cut from the Reserve Bank of Australia could be a positive move for the Australian property sector, according to the Housing Industry Association (HIA).
Responding to the central bank's announcement on Tuesday (December 6th) that rates will be cut to 4.25 per cent, chief economist at the HIA Dr Harley Dale described the decision as "justified".
He noted that the level of new housing activity in Australia is currently in danger of witnessing lows last seen in the immediate wake of the global financial crisis.
Dr Dale said the bank's second consecutive rate cut is "a welcome sign that the RBA is on the case, although a 50 basis point cut would not have been out of line".
The economist added that Australian banks must now ensure they pass the rate cut on to consumers in full.
Chief executive of Master Builders Australia Wilhelm Harnisch also welcomed the lower interest rate by claiming it will "boost confidence and stabilise an uncertain market".
Posted by David McElwain
Responding to the central bank's announcement on Tuesday (December 6th) that rates will be cut to 4.25 per cent, chief economist at the HIA Dr Harley Dale described the decision as "justified".
He noted that the level of new housing activity in Australia is currently in danger of witnessing lows last seen in the immediate wake of the global financial crisis.
Dr Dale said the bank's second consecutive rate cut is "a welcome sign that the RBA is on the case, although a 50 basis point cut would not have been out of line".
The economist added that Australian banks must now ensure they pass the rate cut on to consumers in full.
Chief executive of Master Builders Australia Wilhelm Harnisch also welcomed the lower interest rate by claiming it will "boost confidence and stabilise an uncertain market".
Posted by David McElwain
