Media Release
3 February 2009
BANKS MUST PASS ON RATE CUT FULLY
Statement by Wilhelm Harnisch, Chief Executive Officer
Master Builders Australia, the peak building and construction industry, today called on the
banks to fully pass on the entire one percentage point reduction in official rates, as there is no
case to withhold the benefits of lower interest rates to both households and builders alike.
Mr Wilhelm Harnisch, Chief Executive Officer of Master Builders Australia, said “Another
large cut in official interest rates was appropriate given the deteriorating economic conditions
and forecast slump in commercial building.”
He said, “The housing market should benefit from the massive drop in mortgage rates as well
as the Government’s Nation Building and Jobs Plan and community housing initiatives, and
the $21,000 boost scheme for First Home Owners.”
“Provided the banks pass on today’s cut in full, reductions in mortgage interest rates since the
RBA began lowering official rates in September 2008, will mean a $700 reduction in monthly
payments on an average new housing loan.”
Mr Harnisch said, “The extraordinary action by the RBA in reducing the cash rate by 4
percentage points in six months underlines the tough economic challenges ahead in 2009.”
He said, “Boosting the building and construction industry is a proven success formula for
stimulating economic growth and employment.”
For further information contact:
Wilhelm Harnisch, Chief Executive Officer: Mobile 0402 039 039
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