“Our industry has been disproportionately affected by interest rate hikes,” Wawn said.
A hard economic landing would “endanger the viability” of many builders who survived the pandemic and are now being tested by severe pressures in the supply chain, she said.
“Many now lack the resilience to withstand stronger economic shocks,” she said.
The RBA hikes have taken everyone by surprise, as the bank’s governor, Philip Lowe, had said throughout the year that interest rates probably wouldn’t rise until 2024.
Yesterday, Lowe said more rate hikes are likely to follow in the coming months.
Wawn said the building association acknowledged that the RBA needed to address the dire consequences of inflation, but questioned whether Lowe was pulling aggressively on the levers.
“We are concerned that an ongoing regime of steep rate hikes risks turning the economic knob too far in the opposition direction and slowing economic growth needed for the ongoing recovery from COVID,” she said.
“Time should be given to observe the impact of monetary policy changes on the economy.”
Most market analysts have predicted that the spot interest rate could be anywhere between 2 and 3 percent.
Subcontractors and crafts have been left out by the fallout, and many would-be homeowners have seen projects stall and slumber.
Road torn in two by flooding