The Housing Industry Association , the voice of Australia’s residential
building industry, reports that the RBA has left its key interest rate
unchanged at 2.25 per cent at its April meeting.
HIA Chief Economist, Harley Dale observes that the Reserve Bank has
clearly signalled its intent to undertake a further interest rate cut, and
should therefore just get on with it.
Noting that the national new housing construction cycle is a highlight
in an otherwise sombre environment for domestic demand, Harley Dale said that two
rate cuts in quick succession would bolster the strength in new home building
and assist in generating momentum elsewhere in the economy.
However, Harley Dale believes that interest rate
cuts are no panacea for improving Australia’s economic health. He added that
Governments need to step up to the economic reform plate, starting with housing
policy reform.
