Housing Industry Assoc urges another downward move
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.