The Reserve Bank Board has voted once again to extend the period of steady interest rates, maintaining its position for the 17th consecutive month.

Chief Economist at the Housing Industry Association (HIA) Harley Dale says Australia is experiencing its longest period of interest rate stability in modern history, and is expected to reach that milestone in March next year.

Reflecting on the uncertain and challenging economic environment, Harley Dale notes that steady interest rates would more likely be interrupted in the short term by a further reduction rather than an interest rate hike, although there is no hint from the RBA that such action is in prospect.

HIA maintains its view that the Official Cash Rate will be on hold until well into 2015, which will help sustain the strength in national new home construction activity - a very important driver of domestic economic activity.

The latest ABS building approvals update is supportive of very elevated levels of new home construction persisting into next year. Given that approvals have effectively tracked sideways through most of 2014, new home building can take a further step up only if policy makers step in and undertake significant reform.