Media Release
2
December 2008
RATE CUT UNDERSCORES
WORSENING ECONOMIC OUTLOOK
Statement by Wilhelm Harnisch, Chief Executive Officer
Master Builders Australia, the peak building and construction industry,
today welcomed the
continued aggressive stance taken by the Reserve Bank of Australia in reducing the official
cash rate by one percentage point.
Mr Wilhelm Harnisch, Chief Executive Officer of Master Builders Australia, said “Today’s
cut is very much warranted but more is necessary in the future to counter any further
deterioration in economic conditions and to shore up business and consumer sentiment.”
“The further slashing of interest rates is a clear indication that the RBA is deeply concerned
over the rapid deterioration in economic conditions.”
“The extraordinary action by the RBA in reducing the cash rate by 3 percentage points in four
months underlines the tough economic challenges ahead in 2009.”
Mr Harnisch said, “The fortunes of the building and construction industry will be mixed.”
“The housing market should benefit from the Government’s $21,000 First Home Owners
boost; the massive drop in mortgage rates; and the Government’s $400 million social housing
initiative announced at the 9 November 2008 COAG meeting.
“Reductions in mortgage interest rates since the RBA began lowering official rates in
September will mean a $525 reduction on monthly payments on an average new housing loan,
provided the banks pass on today’s cut in full.”
He said, “The commercial building sector will bear the major brunt
of the global financial
crisis, with new activity falling off significantly. Infrastructure should fare better,
underpinned by government nation building initiatives.”
For further information contact:
Wilhelm Harnisch, Chief Executive Officer: Mobile 0402 039 039
NEWS 
