Master Builders Australia expressed disappointment following the decision by the Reserve Bank of Australia to keep the official cash rate unchanged.
Chief executive Wilhelm Harnisch said "Master Builders was disappointed that rates were not cut given the current poor conditions in the building industry."
Master Builders' December quarter national survey made it clear that sales and forward orders have fallen away dramatically as cautious clients, overseas events and difficulties accessing finance work against any upturn.
"Lower interest rates are needed to restore confidence in the building industry and drive a private sector recovery in the housing and commercial building markets,” Harnisch said.
"Master Builders is concerned that today's (non) decision will mean that the Reserve Bank's interest rate policy is not contributing to lifting the confidence of new home buyers and investors."
Harnisch said, "The building industry was banking on a further rate cut to help boost confidence to stabilise an increasingly uncertain market."
"The Reserve Bank needs to reconsider its strategy and cut rates further to assist in driving a sustainable recovery in the building industry."
