Interest rate decision a missed opportunity
Published: 7 February 2012
Today’s decision to keep interest rates on hold is a missed opportunity to boost consumer confidence and assist the recovery of Queensland’s housing sector, according to Master Builders, Queensland’s peak body for housing and construction.
Master Builders Director of Housing Policy, Paul Bidwell said the decision to keep interest rates on hold has been met with disappointment by Master Builders.
“A third consecutive cut would have been a fantastic start to the new year and was crucial to ensuring a continued recovery for the building industry,” he said.
“The housing sector in Queensland is on the cusp of a slow recovery, with building approvals over the last two months showing the first signs of recovery, and we would have welcomed another measure to encourage this upswing further.
“We believe that by keeping rates on hold this month, the Reserve Bank of Australia (RBA) has missed a vital opportunity to help to strengthen consumer confidence, which is the key to stimulating building activity and providing stability for our industry.
“A cut would have also been great news for housing affordability, as it would allow more people to consider building a new home.
“Here in Queensland it is a particularly good time to build, with homeowners and investors eligible to take advantage of a $10,000 boost that is available as part of the state government’s Building Boost Grant and another rate cut would have made the option of building even more attractive.
“There is no doubt the decision to keep rates on hold, particularly in the face of the current global economic uncertainty, will impact consumer confidence and is a blow for the building industry – to what extent we’ll just have to wait and see.
“The industry has faced some tough times over the last few years and we hope the RBA will consider a cut to rates when it meets again in March.”
Media enquiries:
Julie Russell, Manager – Corporate Affairs via email or phone (07) 3225 6436 or 0414 083 191
