Election winner needs to reignite consumer confidence: Metricon NSW

| May 17, 2019

With calls to cut official interest rates likely to be reignited as a result of yesterday’s ABS job market figures showing unemployment has risen slightly to a seasonally-adjusted 5.2 per cent, Metricon NSW general manager, Luke Fryer says our common goal should now be finding ways to bring confidence back into the economy.

“Any reduction in official interest rates would need to translate into more money in people’s pockets to stimulate consumer confidence,” Mr Fryer said.

“Whichever Party wins government on Saturday, they will be faced with a huge challenge, to reignite confidence among consumers and business.

“The bipartisan support for a First Home Buyer Loan Scheme announced on Sunday was an excellent start.   If the Reserve Bank intends to act on job figures with a cut to official interest rates, the real test will be how this translates into a real benefit to consumers.

“Everyone is talking about rates being cut, but what potential property purchasers care about the most, is will they be better off financially as a result?

“We have hundreds of people who want to build homes in NSW, many of whom are just waiting to see what happens on Saturday.  They’re seeking hope and confidence, and we’re looking forward to seeing this provided through measures that directly address their financial challenges,” Mr Fryer added.

Thrive Homes general manager, Patrick Eather said news that the official unemployment figure remains above 5 per cent and any subsequent decision by the Reserve Bank to cut rates, should herald some relief for property owners and in particular, first home buyers

Mr Eather said consumers will be watching to see if ABS job figures trigger a decision to reduce official interest rates after the Reserve Bank said earlier this week that a rate cut may be appropriate if unemployment rises.

“This week is shaping up to be a huge turning point for first home buyers,” Mr Eather said.

“If the Reserve Bank acts and cuts rates soon, the potential for this to translate positively in terms of consumer confidence is encouraging.

“This combined with the news that both major parties intend to introduce a First Home Buyers Loan Scheme that will make it easier for someone to pull together a deposit for their first property purchase, couldn’t be coming at a better time.

“We’ve already seen some second-tier lenders start reducing their rates over the past few weeks in anticipation of a rate cut.  All these factors combined are starting to translate into a stronger sense of confidence among first home buyers ahead of the election this weekend,” Mr Eather said.