Global Power | Local Knowledge | Uniquely Personal

New interest rate cuts needed

The Reserve Bank may need to cut interest rates again in order to stimulate the property market.

The chief economist of Master Builders, Australia's largest construction industry union, is calling on the Reserve Bank to cut interest rates further this year in order to capitalise on recent encouraging trends within the property market.

Rates were cut to three per cent last month, sparking something of a mini revival in the property sector, and Peter Jones is now calling for further cuts at the next board meeting in February.

With the recent boom in the mining industry predicted to slow down considerably this year, hopes are high that the residential property market will take over as a major driver of Australia's economy, although the latest figures relating to building approvals in the last few months are not totally convincing.

According to the Australian Bureau of Statistics, the total value of building approvals for the month of November fell by 4.1 per cent, although the overall number of approvals actually increased by 2.9 per cent, ending a run of five consecutive months in which the number of approvals went down.

DISCLAIMER: All information provided is of a general nature only and does not take into account your personal financial circumstances or objectives. Before making a decision on the basis of this material, you need to consider, with or without the assistance of a financial adviser, whether the material is appropriate in light of your individual needs and circumstances. This information does not constitute a recommendation to invest in or take out any of the products or services provided by SMATS Services (Australia) Pty Ltd or Australasian Taxation Services Pty Ltd.

COPYRIGHT: All information provided is protected by international copyright laws. You may not copy, reproduce, distribute, publish, display, perform, modify, create derivative works, transmit, or in any way exploit any such content, nor may you distribute any part of this content over any network. Copying or storing any content is expressly prohibited without prior written permission of SMATS Group or the copyright holder identified in the individual content's copyright notice. For permission to use the content on please contact

Subscribe Now