Interest rate cut welcomed by MBA

Master Builders Australia (MBA) has asserted that the latest cut to the cash rate will be a welcome decision for the country's home loan customers.

However, chief executive officer of the organisation Wilhelm Harnisch said the Reserve Bank of Australia (RBA) should introduce further cuts to "assist in driving a sustainable recovery in the building industry".

He urged banks to adjust their interest rates so they fall in line with the latest changes, adding that there would be "no justification" for a delay.

"Today's rate cut will be welcome news for existing homeowners struggling with mortgage repayments but only if the banks pass on the rate cuts," Mr Harnisch commented.

The RBA's announcement of a rate cut is the first to occur this year, as the cash rate has been stable at 4.75 per cent.

In the latest statement from RBA governor Glenn Stevens, he announced that the cash rate will be reduced by 25 basis points to 4.5 per cent, with effect from November 2nd.

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