State, territory governments must seize opportunity presented by RBA rate cut

“The opportunity to get the housing market moving again has never been greater. State and territory governments must grab it,” Master Builders Australia’s Chief Economist Shane Garrett said.

“Today’s reduction in the Reserve Bank of Australia (RBA) cash rate brings it to a new all-time low of 1.25%. Never before have we gone for almost a decade without an increase in interest rates. The RBA has cut interest rates twelve times since late 2011,” he said.

“Since then, over 735,000 home loans have been issued to First Home Buyers. Combined with the recent APRA review of lending criteria and the Morrison Government’s new First Home Loan Deposit Scheme, today’s decision represents more good news for those seeking to become home owners for the first time,” Shane Garrett said.

“With over 350,000 small businesses operating in the residential and commercial building sector, we urge lenders to pass today’s rate cut on to them fully and without delay,” he said.

“A real opportunity now exists for dragging the housing market back in the right direction. In finalising their budgets over the coming days and weeks, state and territory governments should seize the chance to get the housing market firmly back on its feet by enhancing incentives for First Home Buyers and taking initiatives to support new home building,” Shane Garrett said.