The latest cut in official interest rates has been welcomed by Australia’s housing industry.
The cut of 0.25% is the fifth fall in eight months and will ensure that as the world slowdown takes hold, the recovery of the domestic construction industry will continue into next year.
The Housing Industry Association (HIA) said that at a time of global economic weakness and uncertainty, lower interest rates will provide a much needed boost to Australian consumers, particularly in the lead up to Christmas.
The overnight 0.5% reduction in US rates creates scope for a further fall in Australia’s official interest rates.
HIA’s Managing Director, Dr Ron Silberberg, said, “The industry is now back to the levels that we have seen over the past ten years. Building approvals and new home sales are up, but most important of all, the industry is hiring again with 10,000 direct jobs created over the past three months.”