Reserve Bank releases meeting minutes
THE Reserve Bank (RBA) released the minutes of their May board meeting last week when it reduced official interest rates by 25 basis points to 2.75 per cent, their lowest level in more than 50 years.
Specifically relating to the housing and construction sector the minutes noted: ‘‘Dwelling prices were around 4 per cent above their trough in mid 2012, and auction clearance rates had increased.
‘‘New borrowing for housing had also picked up, while forwardlooking indicators and the Bank’s business liaison suggested that demand for new housing was improving - notwithstanding a decline in building approvals in the March quarter - with enquiries from prospective purchasers and visits to display homes increasing. New dwelling investment had increased since the middle of the previous year, with members observing that approvals for higher-density dwelli ngs had i ncreased, while approvals for detached dwellings had been flat over this period.’’