The Reserve Bank of Australia (RBA) surprised virtually no one with its widely-expected decision to hold the cash rate for another month. The cash rate is currently at the all-time low figure of 2.5 per cent, and has been for over a year now.
"Interest rates are very low and for some borrowers have continued to edge lower over recent months," commented RBA Governer Glenn Stevens in an August 5 statement.
This has made for what Loan Market called in an August 5 press release "the longest and lowest period of rate stability in decades".
Loan Market Director Mark De Martino praised the RBA in the same release for promoting the stability of the economy by keeping rates steady. He also noted that lenders around the country were already lowering their interest rates in order to compete for customers, despite the RBA not having changed the rate for a whole year.
"A couple years ago, I doubt anyone would have thought you could have got a fixed rate below five per cent for five years," he said.
This should be good news for anyone making their living working with a concrete grinder or digger. With Australians continuing to make their borrowing choices in a low interest rate environment, it wouldn't be surprising to see more construction projects popping up.
Lower interest rates mean more affordable home loans for ordinary buyers, which may well bump up the already-high demand for property around the country. They will also make construction loans more affordable for individuals or companies looking to build from scratch.
Indeed, just last month, BIS Shrapnel had reported that record low interest rates were one of the factors driving new housing construction to reach a forecast new peak over the next year.
Workers may want to keep a lookout for increased opportunities for construction work in the near future.