“The lowering of the interest rate to 1.25 per cent provides a welcome shot in the arm for Victoria’s housing market,” Rebecca Casson, CEO of Master Builders Victoria, said.

“Victorians can better afford to access the money they need to engage builders and tradespeople,” Ms Casson said.

“With Victoria the fastest-growing state in the nation, the need for more housing is there,” she said. “As the leading voice of the building and construction industry, we believe this rate adjustment helps to bring a new home or remodel within closer reach of consumers who need the services of Victorian builders.”

“Building and construction continues to play a critical role in the health and vitality of the Victorian economy, contributing more than 45 per cent of its tax revenue and being its largest full-time employer,” Ms Casson said. “This rate cut will help boost our sector and make the state economy stronger.”