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Banks to try stimulate Australian house building

Australia's construction market is hoped to help boost the country's economy in 2013.

Australia’s banks are to look at ways to stimulate the construction market in 2013 and help encourage the country's economy.




The Reserve Bank of Australia (RBA) is looking at methods to encourage the construction market to help boost the economy as the recent boom in mining investment is expected to peak this year.




By cutting interest rates last year, the RBA hoped to encourage economic growth through financial easing. It said that there had been signs that activity in the housing market had picked up after the Australian Bureau of Statistics (ABS) reported a 1.6 per cent increase in house prices nationwide in the last quarter of 2012.




As a result, the RBA has yet to make any further cuts to rates since they last eased them in December. However, critics have said that if the RBA wants to stir the housing market it will need to cut the rates again.




Recent statistics from the ABS showed that the number of home loans that were taken out in December had fallen by an average of 1.5 per cent across the country.




Posted by Ravin Chatlani

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