Australian property and building body Master Builders Australia (MBA) has expressed its regret that the Reserve Bank of Australia (RBA) has refused to instigate any rate cuts.
Wilhelm Harnisch, MBA chief executive, argued the poor condition of much of the building industry should have acted a spur to drive the reduction of rates and cited the MBA's December survey as evidence further stimulus is needed.
The survey showed profitability in the industry sitting just above the 50 mark, where anything below 50 indicates it is making a loss.
Furthermore, many respondents indicated they could consider trimming their budget by sacking staff.
"Monetary policy needs to be more supportive to underpin activity in a building industry clearly stuck in the slow lane of the economy," said Mr Harnisch.
He added that there is a concern the RBA's decision will contribute to reduced consumer confidence among first-home buyers as well as investors.
Posted by Steve Douglas
