AT ITS March meeting last week, the Reserve Bank of Australia left its key interest rate unchanged at 2.25 per cent.
The Housing Industry Association, the voice of Australia’s residential building industry, said the decision will come as something of a disappointment to mortgage borrowers and small businesses who had been hoping for a second interest rate cut according to HIA senior economist Shane Garrett.
“Many areas of domestic demand are struggling at this time, with business investment as yet failing to respond to low rates, and unemployment continuing to drift upwards.
“There had been hopes that the RBA would reduce interest rates in order to provide additional support,” Mr Garrett said.
“At this time, it is very fortunate that new home building is providing such vital support to demand, with ABS data earlier today showing new dwelling approvals hitting another new record in January.
“The RBA has strongly hinted that rates may be lowered in the months ahead. Interest rates should be cut again in April in order to dispel any uncertainty,” Mr Garrett said.