The Reserve Bank of Australia (RBA) should cut rates next week, according to the Real Estate Institute of Australia (REIA).
With ample justification to decrease the official cash rate, the RBA should do so at the upcoming board meeting, said REIA president Pamela Bennett.
“Retail figures are going nowhere and building approvals have fallen dramatically. It seems everywhere you look outside the mining sector, the economy needs support and the RBA is in a position to do something about it,” Ms Bennett said.
The REIA suggests a cut of 25 basis points to improve affordability by 2.25 per cent.
“That would have an enormous impact on consumer confidence with flow-on effects to business and the economy,” she said.
Ms Bennett said that this sort of cut could help areas that haven’t benefited from the mining boom and will help to restore consumer sentiment.