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Rate cuts called for amid building approval figures

HIA is calling for a rate cut from the RBA amid poor building approval figures.

The recent decline in building approvals in Australia has spurred calls for the Reserve Bank of Australia to cut its benchmark interest rate.

Following the recent announcement from Australian Bureau of Statistics (ABS) that building approvals had fallen by 6.9 per cent in June, the Housing Industry Association (HIA) has suggested this is a sign that further rate cuts need to be made.

The Reserve Bank of Australia (RBA) most recently cut its benchmark interest rate to a record low 2.75 per cent. This has shown to have a positive effect on the economy, as consumers have been more keen to buy into the housing market of late.

To aid the construction sector, the HIA suggests that political parties use the upcoming election as an opportunity to reduce red tape in the industry.

Senior economist for HIA Shane Garrett said: "For some time, we have been calling for structural impediments on housing activity to be reduced, including the taxation burden, excessive planning barriers and regulatory costs."

Posted by Steve Douglas

- interest, rates, building, approval

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