MBA - Rate Cuts Must be passed-on to Underpin Housing Recovery
05 December 2012
Master Builders welcomes the Reserve Bank's reduction of the official cash rate by 25 basis points and calls on banks to pass the cuts onto homeowners and small business....
Master Builders Australia - Rate Cuts Must be passed-on to Underpin Housing Recovery
Master Builders welcomes the Reserve Bank’s reduction of the official cash rate by 25 basis points and calls on banks to pass the cuts onto homeowners and small businesses, in full.
Wilhelm Harnisch, Chief Executive of Master Builders Australia said the interest rate cut will have a positive effect underpinning a housing recovery in 2013.
“The decision to cut rates is justified following the lower than expected building approvals figures released today by the Australian Bureau of Statistics.
“The housing market has been stagnant, while new home buyer and investor confidence to date has been low. It is hoped that the latest cut by the reserve bank will act as the trigger for improved confidence.
“The building industry is banking on the latest rate cut to act as a circuit breaker to flagging confidence and underpin the momentum for a housing recovery in 2013.
“With lending costs staying relatively stable in recent months and after posting a combined profit of $25 billion this year, it would be very hard for the big banks to provide any justification not to pass the rate cuts on to customers in full.
“The Reserve Bank has been doing the heavy lifting trying to stimulate consumer confidence in the non-mining sectors of the economy. It’s time the banks and commercial lenders started doing their fair share, Mr Harnisch said.
Statement by Mr Wilhelm Harnisch, Chief Executive Officer
