The Housing Industry Association , the voice of Australia’s residential building industry, reports that the RBA’s announcement for no change to the Official Cash Rate in June was in keeping with the widely expected norm for RBA Board meetings in 2014.

HIA Chief Economist, Dr Harley Dale observes that the latest announcement conveys the RBA Board has a high degree of comfort with the current cash rate of 2.50 per cent, given an environment where competing factors are influencing Australia’s overall economic performance.

According to Dr Dale, the recovery in new residential construction activity is a healthy sign for the Australian economy, adding that a period of stability will maintain a positive environment for residential construction activity to boost economic growth throughout 2014 and into next year.

He concludes that the latest interest rate statement from RBA hopefully reduces the recent elevated level of conjecture, and therefore uncertainty, regarding the direction and timing of the next interest rate move.