Interest rate cut only one piece of economic growth Jigsaw

“The official interest rates for the second month running is to be welcomed and we urge lenders to fully share the reduction, especially for home loan and small business customers,” Master Builders Australia’s Chief Economist Shane Garrett said.

“However, interest rates are only one ingredient of the economic growth recipe and progress must also be made in other areas to get the economy growing more quickly,” he said.

“We need to see the Parliament pass the Government’s full program of income tax cuts to put more money in people’s pockets and the confidence to spend,” Shane Garrett said.

“Fast tracking the construction of infrastructure projects would provide a kick start for growth and boost confidence in the construction sector and the wider economy,” he said.

“Small firms are the lifeblood of the Australian economy. To complement the rate cut the Government should continue loosening the burden of red tape and regulation, allowing small business to operate more freely,” concluded Shane Garrett.