Fed: Pessimistic builders need another rate cut

AAP General News (Australia)
04-06-2009
Fed: Pessimistic builders need another rate cut

Builders need another interest rate cut to combat the downturn.

So says Masters Builders Australia .. as the Reserve Bank prepares to hold its monthly
board meeting tomorrow.

MBA chief economist PETER JONES says a quarterly survey has found the government's
stimulus measures are having little or no impact on business activity in the building
sector.

He says builders expect activity to drop by more than 20 per cent .. and jobs to fall
by more than 10 per cent .. as the credit crunch adds to the pessimism.

There's a glimmer of hope in the home building sector .. but the MBA wants the more
generous first home owners grant extended .. and public building projects and tax cuts
brought forward .. to give the industry a desperately needed lift.

AAP RTV cb/rl/jmt

KEYWORD: RATES BUILDERS (CANBERRA)

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