Hous­ing In­dus­try As­soc urges an­other down­ward move

Port Douglas & Mossman Gazette - - FRONT PAGE -

THE Re­serve Bank should cut in­ter­est rates again in the fi­nal quar­ter of 2013, says the Hous­ing In­dus­try As­so­ci­a­tion, the voice of Aus­tralia’s res­i­den­tial build­ing in­dus­try.

HIA chief econ­o­mist Dr Har­ley Dale said, ‘‘The bank should be pre­pared to ease rates fur­ther in com­ing months given the mod­est na­ture of the re­cov­ery un­der­way in res­i­den­tial con­struc­tion,’’ noted Mr Dale. ‘‘Res­i­den­tial con­struc­tion is a vi­tal cog in Aus­tralia’s econ- omic wheel, yet a re­cov­ery in new home build­ing ac­tiv­ity is fall­ing well short of the mag­ni­tude re­quired while ren­o­va­tions ac­tiv­ity is at a 10-year low.’’

‘‘A fi­nal round of in­ter­est rate cuts in late 2013 would co­in­cide with a likely boost to house­hold and busi­ness con­fi­dence fol­low­ing the fed­eral elec­tion. That com­bi­na­tion would help set the plat­form for a sus­tained re­cov­ery in new home con­struc­tion and a turn­around in ren­o­va­tions in­vest­ment,’’ he said.

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