Building slump fuels rate cut "talk"

[Green Lantern]

"BUILDING approvals dived by more than five times market forecasts, with
some economists now predicting a rate cut by October.

Australian building approvals fell 5.7 per cent to 12,495 units in March,
seasonally adjusted, from an upwardly revised 13,244 units in February, the
Australian Bureau of Statistics said.

The market forecast was for building approvals to show a 1.0 per cent fall
in March.

In the year to March, building approvals fell 0.7 per cent.

The market forecast was for building approvals to show a 1.0 per cent fall
in March.

Lehman Brothers chief economist Stephen Roberts said the small recovery in
building approvals in the second half of 2007 had now been wiped out, which
made a rate cut in the second half of this year more likely.

"Quite clearly, it's a very weak number," he said.

"Clearly, housing activity is weak.

"The issue is, at what point does the Reserve Bank look at lower interest
rates?" "

http://www.theaustralian.news.com.au/story/0,25197,23627518-20142,00.html

Now Lehman Brothers wouldn't have a vested interest in lower rates would
they ? It's very good of this fellow to give his professional and unbiassed
opinion.

LOL