RBA holds interest rates
At a time when Australia is trying its best to pull out of a global recession, many sectors of the ...
At a time when Australia is trying its best to pull out of a global recession, many sectors of the economy are being scrutinised.
One of those industries is the property sector as residential and commercial property investment is essential in encouraging economic growth.
As a result, the decision from the Reserve Bank of Australia (RBA) to hold official interest rates at 4.25 per cent in March has not been well-received by some bodies.
The Housing Industry Association (HIA) sees the move as slightly counter-productive and would have rather have seen a significant interest rate cut.
HIA chief economist Dr Harley Dale said the rate will hinder the activity of small and medium-sized businesses, as well as some large businesses.
Dr Dale said: "Against this backdrop, a rate cut today would have been the appropriate action to take."
However, a steady rate is preferred to an increase and recent numbers indicating a general rise in housing affordability may help to soften the difference.