Latest rate cut welcomed
The latest cut in official interest rates has been welcomed by Australia's housing industry.
The cut of 0.25% is the 6th fall in 10 months and should ensure that as the world slowdown takes hold, the all important recovery in the domestic construction industry will continue into next year.
The Housing Industry Association said that at a time of global economic weakness and uncertainty, lower interest rates will provide a much needed boost to Australian consumers, particularly over the Christmas period and into next year.
HIA's Senior Economist, Mr Simon Tennent, said that for the housing industry, the last 6 cuts had reduced rates by 2%, slashing $191 off the monthly payment for a $150,000 mortgage, and put home ownership within reach of many more households.
"Today's cut, combined with the improvement in building approvals yesterday, will ensure that the housing industry continues to be the star performer for the economy into next year," Mr Tennent said.
"Even with the phasing down of the First Home Owners Grant, the improvement in affordability and the continued strength in the repeat buyer market will have a positive effect on the all important manufacturing, retail and service industries for the duration of 2002."
8-Feb-2002