“The outcome of Tuesday’s RBA meeting means that the Official Cash Rate has now been held steady for 12 consecutive months,” HIA Senior Economist, Shane Garrett said.
“The decision to hold rates steady was made in the context of fairly restrained price inflation across the economy and challenging demand conditions.
“Residential building activity is now starting to contract having been a driver of growth up until recently.
“New dwelling commencements peaked in the March 2016 quarter and remain relatively high.
“Australia’s economy will continue to require low interest rates in order to achieve stronger growth over the medium term.
“In terms of keeping inflation at bay, the Australian economy has performed an exceptional feat over the past number of years. Our exchange rate has dipped sharply and dwelling prices have escalated in key markets – but without fuelling detrimental wage or price pressures across the economy.”
