Master Builders Australia welcomes the Reserve Bank’s decision to cut official interest rates by one quarter of a percentage point, particularly in the light of waning confidence in the still fragile Australian economy.

“The rates cut should help reboot confidence and ensure the building and construction industry can play a key role in rebalancing the economy,” Peter Jones Chief Economist of Master Builders Australia said.

“The RBA’s decision will benefit the housing market even as residential builders enjoy a solid uplift in activity driven by pent-up demand,” he said.

“Commercial builders will particularly welcome the RBA’s move to lower rates as non-residential building continues to suffer from the effects of weak business investment,” Peter Jones said.