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Master Builders Australia has today welcomed the decision by the Reserve Bank to lower official interest rates and is calling on the banks to play their part in restoring confidence to the Australian economy.
Mr Wilhelm Harnisch, Chief Executive Officer, said “Banks must mirror the cut in official rates to help new home buyers as well as providing relief for existing homeowners and small businesses struggling with repayments.”
Mr Harnisch said, ““There would be no justification for the banks to delay or withhold the reduction in the official cash rate announced by the RBA today.”
He said, “Today’s decision has the potential to act as an important psychological circuit breaker required to boost confidence and rekindle home buyer interest.”
“The banks must play their part by fully passing on the reduction in official rates thereby ensuring today’s decision has a meaningful effect on a clearly struggling building industry.”
“Lower interest rates are needed to drive a private sector recovery, particularly in housing and commercial building sectors that are currently facing weak trading conditions.”
“Despite lingering concerns regarding the cost of funds associated with European sovereign debt problems, Master Builders urges the banks to fully pass on the rate cut.”Mr Harnisch said, “Although today’s decision to cut official interest rates will help to end ‘homebuyer slumber’ the Reserve Bank should not rule out further policy action later in the year to underpin the economy and ensure a sustainable recovery in the building industry.”
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