The Reserve Bank of Australia's (RBA's) statement on its decision to leave the interest rate on hold will increase business confidence in the country, according to the Urban Taskforce.
Aaron Gadiel, the taskforce's chief executive, said that minutes from the May meeting of the RBA's board had "unnecessarily dampened business confidence".
The board had said that "if economic conditions continued to evolve as expected, higher interest rates were likely to be required".
This week's statement from the board suggested that increasing interest rates in the near future would be "inappropriate".
Mr Gadiel claimed that the RBA must not just look at the strength of the resources industry when making future decisions on the interest rate, as other parts of the economy are facing difficulties.
The Urban Taskforce recently claimed that more Australian property needs to be built in New South Wales as it is currently on track to have a shortfall of 300,000 homes by 2014.
Posted by Craig Francis
