The Australian property and construction industries will be buoyed by the Reserve Bank of Australia's (RBA's) decision to lower the cash rate by 25 points to 4.25 per cent, predicted Master Builders Australia (MBA).
Wilhelm Harnisch, chief executive officer of MBA, was responding to the decision from RBA governor Glenn Stevens, who argued turbulence in the global financial markets had impacted on Australian economic growth and contributed to softening the labour market.
He expressed his pleasure at the bank's decision but warned it would only have its intended effect if other banks followed suit and did not delay passing on the rate cut.
There was no reason they should hold off as it would help property owners and new home buyers and thus stimulate the economy, he added.
"The industry is hopeful that the second consecutive interest rate cut will work to boost confidence and stabilise an uncertain market," said the chief executive officer.
Posted by Steve Douglas
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