Banks and other lenders must pass on today’s RBA rate cut in full and without delay,” Master Builders Australia’s Chief Economist Shane Garrett said.
“The Reserve Bank reduced the official interest rate by 25 basis points earlier this afternoon, taking the rate down to a new unprecedented low of just 0.75 per cent,” he said.
“We welcome today’s RBA’s decision given it has the potential to boost demand across the economy and reduce financing costs for the 370,000 small businesses in the building and construction sector,” he said.
“There is already evidence that the interest rate reductions earlier this year have started to steer some parts of the housing market in a positive direction,” Shane Garrett said.
“The latest RBA move will only succeed if it is matched by similar reductions in the interest rate on mortgages and small business loans. It is important that the banks and major lenders play their part in making sure that this happens,” Shane Garrett said.