Fed: Unexpected drop in building approvals good news for rates
An unexpected drop in home building approvals has all but ensured interest rates willremain unchanged in coming months.
While economists had been predicting a 2.5 per cent improvement, private home approvalsdropped 8.2 per cent and total dwellings approvals fell 7.3 per cent during December.
Despite the fall, the December figures are still 30 per cent above those recorded forthe same period in 2000 and follow a 5.9 per cent rise in November.
The housing industry's been quick to seize on the figures, saying they show there'sno need for any increase in interest rates.
AAP RTV sw/tb/jh
KEYWORD: ECONOMY (CANBERRA)
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