The Reserve Bank of Australia continues to maintain its position on interest rates with no change announced for the fourteenth consecutive month. There is no indication of an impending change, according to the Housing Industry Association , the voice of Australia’s residential building industry.

HIA Chief Economist, Harley Dale observes that the Australian central bank has indicated the Official Cash Rate has a secure spot at 2.5 per cent for some time to come. This interest rate outlook is supportive of healthy levels of new residential construction activity throughout 2014/15.

Harley Dale notes that the performance of new housing boosts the Australian economy; new housing is a clear bright spot for domestic demand and needs to continue to shine.

According to Harley Dale, a broader strength in domestic demand is required, including in the renovations segment of residential construction, which has yet to display signs of sustained recovery from a decade low.

Given the low borrowing costs, which continue to decline, the widespread perception that the current period of stability in official interest rates will continue, assists the prospects of a strengthening in overall residential construction and wider domestic economic activity.

Harley Dale concludes that it is unlikely monetary policy will get the job done on its own.