Interest rate cuts no ‘miracle’ cure for building industry

Falling interest rates will help bolster the struggling residential construction sector, but they are no “miracle” cure for an industry facing strong headwinds, economists say.
The Reserve Bank this week cut the benchmark interest rate by half a percentage point to 4.75 percent, stepping up the pace from its quarter point cut in August. Many economists expect the bank to cut a further half point next month to bolster the weak economy.