Building Costs in the Frame for Ongoing Housing Crisis

Neither the construction union nor elevated interest rates are to blame for putting the squeeze on would-be home buyers and renters, the Reserve Bank says. Defending the decision to keep Australia’s key rate at its post-pandemic peak, Reserve Bank of Australia (RBA) governor Michele Bullock on Aug. 16 delivered a tough message to those expecting relief. With financial markets betting on a rate cut before the end of the year, she warned households, businesses, and market pundits it was “premature” to be thinking about rate cuts. Inflation “remains too high”, she said, while admitting the official cash rate was a “very blunt instrument” for recalibrating the economy....