Responding to the rise in interest rates Master Builders Australia’s CEO Denita Wawn said, “The Reserve Bank’s decision to further increase interest rates is more evidence of the need for monetary policy to return to more normalised settings to combat inflation.”
“However, while acknowledging the need to tackle the dire effects of inflation, we are concerned that a continuing regime of steep rate rises risks turning the economic dial too far in the opposite direction and stalling the economic growth needed for the continuing recovery from COVID,” she said.
“Time should be given to observe the impact of the monetary policy changes in the economy,” Denita Wawn said.
“Our industry is disproportionately affected by interest rises and a hard economic landing would put at risk the viability of many building and construction businesses who have managed to come through the pandemic but whose resilience has been eroded by severe supply chain pressures. Many now lack the resilience to withstand more sharp economic shocks,” she said.
“The building and construction industry has shouldered much of the responsibility for underpinning the economic recovery. Suppressing construction activity would counteract the efforts of governments and the expenditure of billions in taxpayer’s funds to shepherd the economy through the worst of the pandemic and protect growth,” Denita Wawn said.
“Today’s decision reinforces the need for the Federal Government to ensure that its fiscal policies, indeed all economic levers, must be tested against their ability to drive down inflation and increase productivity,” Denita Wawn said.