Master Builders Australia welcomes the Reserve Bank’s (RBA) decision to further cut the official interest rate by 25 basis points to1.5 per cent.

“Master Builders endorses the RBA’s view that today’s rate cut represents a low risk of fuelling a house price surge given the additional prudential measures imposed on the banks by the RBA and the tougher lending criteria being applied by the banks themselves,” Wilhelm Harnisch, CEO of Master Builders Australia said.

“The rate cut will help maintain confidence in the new housing market which has been a ray of sunshine in the economy, particularly in sustaining employment,” he said.

“The rate cut should give new home buyers the confidence to enter into home ownership with the prospects of interest rates remaining at current levels for the foreseeable future,” Wilhelm Harnisch said.

“It should also provide first home buyers with confidence to enter into the new housing market for the same reason,” he said.

“While the interest rate cut is welcome, it highlights the need for the Government to embark on serious Budget repair and other economic reforms to ensure that the Australian economy has the capacity to weather the global uncertainties,” Wilhelm Harnisch said. 

Ends...